Warren Buffett has reduced his holdings of 52 million shares of Bank of America stocks and cashed out $2.3 billion within six trading days, and may continue to sell.
Buffett is selling Bank of America's stocks again.
According to a document submitted to the SEC by Berkshire Hathaway on the 24th, during July 22-24, Berkshire Hathaway sold nearly 19 million shares of Bank of America's stocks, with a total amount of approximately $0.8 billion.
And on the 17th-19th of July, Berkshire Hathaway just sold 33.89 million shares of Bank of America's stocks, which means that Berkshire Hathaway has sold nearly 52.89 million shares of Bank of America's stocks with a value of approximately $2.3 billion in six trading days.
After two rounds of selling, Berkshire Hathaway still holds 0.98 billion shares of Bank of America, although the shareholding ratio has dropped to 12.6%, Berkshire Hathaway is still the largest shareholder of Bank of America, with a market value of approximately $41 billion.
According to some analysts, based on Buffett's previous habit of clearance, the sale of Bank of America's stocks may not be over yet. Buffett may first reduce the shareholding ratio of Bank of America to below 10% (which means that it needs to sell about 0.2 billion shares in the future), and then Berkshire Hathaway will no longer need to report its transactions within two days, after all, Buffett prefers to trade stocks without quick public disclosure.
Berkshire Hathaway has previously completely cleared its holdings in HP Inc., U.S. Bancorp, and Paramount Global at this rhythm, but it is not clear when Berkshire Hathaway will stop selling.
Buffett's timing of selling Bank of America's stocks is also very clever, taking advantage of the recent general rise of bank stocks in the US stock market to reduce holdings. Also, because of Berkshire Hathaway's continuous selling, Bank of America's recent stock price performance has lagged behind some of its peers. On Thursday, Bank of America's stock price closed at $41.68, down 1.2%, while major peers such as JPMorgan and Wells Fargo & Co's stock prices are rising.