Business Standard

Warren Buffett shrinks stake, sells more BofA shares worth $982 mn

Buffett has held silent about his reasoning while whittling the highly profitable bet - an investment that began when the stock was trading near $5 in 2011

Warren Buffett

Warren Buffett |Photo: Bloomberg

Bloomberg

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Warren Buffett sold an additional $982 million of Bank of America Corp. stock as his conglomerate continues to shrink its investment in the second-largest US bank.
 
His Berkshire Hathaway Inc. has trimmed the stake by a total of almost 13 per cent in a series of sales since mid-July, generating $5.4 billion in proceeds. Berkshire disclosed the latest disposals in a regulatory filing late Tuesday, detailing sales on Aug 23, 26 and 27.

Buffett has held silent about his reasoning while whittling the highly profitable bet — an investment that began when the stock was trading near $5 in 2011. The shares were up 31 per cent this year before the selling spree. They have since slid about 10 per cent to $39.67.
 

The string of sales signals Buffett’s biggest pullback from an investment that long served as a stamp of approval on the leadership of Bank of America Chief Executive Officer Brian Moynihan, whom the 93-year-old investor has repeatedly praised in public.

Berkshire still remains the bank’s biggest stockholder — with 903.8 million shares worth $35.9 billion, based on Tuesday’s closing price.

A representative for Bank of America declined to comment. Berkshire didn’t immediately respond to a request for comment outside of normal business hours.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Aug 28 2024 | 6:44 PM IST

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