Warren Buffett, the famed investor known for his long-term investment strategy, has been making waves in the market with his recent moves. His company, Berkshire Hathaway, has been steadily reducing its stake in Bank of America, marking the 13th round of sales since mid-July. These sales, totalling $338 million, have been conducted at an average price of $39.40, one of the lowest prices received since the selling began.
Despite these sales, Berkshire Hathaway remains the largest shareholder in Bank of America, holding a significant 10.2% stake valued at over $31 billion. However, the recent transactions have been smaller in comparison to previous rounds, which averaged around $750 million.
While the reasons for the sales remain undisclosed, the move has sparked curiosity and speculation within the financial community. Even Bank of America CEO Brian Moynihan has admitted uncertainty about Buffett’s intentions, stating, “I don’t know what exactly he is doing because frankly we can’t ask.”
Buffett’s decision to sell a significant portion of his holdings in one of his favorite stocks has raised eyebrows given his reputation for long-term, patient investing. This has led to speculation about potential strategic shifts or concerns about the market’s future.
Bank of America’s stock closed at $39.23 on Wednesday, up 0.025% for the day. The stock has seen a surge of 15.72% year-to-date, according to data from Benzinga Pro.
