Berkshire slashes Bank of America stake to under 10%, no longer required to disclose frequently

Published On Oct 10, 2024, 6:19 PM

Berkshire Hathaway has reduced its stake in Bank of America to below 10%, a threshold that allows them to stop frequently disclosing their transactions. Warren Buffett's firm sold over 9.5 million shares recently, lowering its ownership to approximately 775 million shares. Despite this large sale, Bank of America's stock has only seen a minor increase of about 1% over the past month. This sell-off comes in the context of Buffett previously selling stakes in other major banks and expressing caution about bank investments due to changing market conditions and past crises.

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Berkshire Hathaway's reduction in stake may signal caution regarding the banking sector, and it could lead to further pressure on Bank of America's stock if other investors follow suit. However, Bank of America remains strong with stock repurchases and has been able to absorb previous selling. The cautious approach from Berkshire might reflect broader market concerns, but it can also attract attention to potential undervaluations.

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