Berkshire sells more BofA shares, stake falls below 10%

Investing.com — Warren Buffett’s Berkshire Hathaway (NYSE:) (NYSE:) reduced its stake in Bank of America (NYSE:), selling 9.5 million shares valued at $382.4 million this week, as per a regulatory filing, Reuters reported on Thursday. 

This move brings Berkshire’s ownership in the U.S. banking giant to below 10%.

Under U.S. Securities and Exchange Commission rules, shareholders with more than a 10% stake in a company must report stock transactions within two business days, the report added. 

Now that Berkshire’s stake has fallen below this threshold, investors will likely need to wait for the company’s quarterly financial reports or stock holdings disclosures to learn about any further sales.

Berkshire began reducing its Bank of America holdings in mid-July, when it sold around 33.9 million shares for approximately $1.48 billion. 

Prior to this, the investment had generated over $10 billion in profits for the company.

Bank of America isn’t the only stock Berkshire has been cutting back on. Earlier in 2024, the conglomerate halved its holdings in Apple (NASDAQ:) as well.

During Berkshire Hathaway’s annual meeting in May, Buffett explained that selling stocks made sense, particularly as federal capital gains taxes could rise depending on the outcome of the next U.S. presidential election.

Buffett originally invested in Bank of America in 2011, purchasing $5 billion worth of its preferred stock, the report added.