Why Warren Buffett Sold $845 Million in Bank of America Shares Again?

Billionaire Warren Buffett, through his conglomerate Berkshire Hathaway, has once again reduced his stake in Bank of America by selling shares worth approximately $845 million. According to a regulatory filing disclosed on Friday, Berkshire sold around 21.1 million shares of the bank between August 28 and August 30. This sale is part of a broader strategy by the legendary investor, marking the seventh round of share sell-offs since July, amounting to over $6 billion in total.

Buffett, who has been a long-time supporter and top shareholder of Bank of America, began investing in the bank back in 2011 with a $5 billion purchase of preferred stock. This move was seen as a vote of confidence in CEO Brian Moynihan's leadership and his ability to steer the bank back to stability following the 2008 financial crisis. Despite his earlier endorsement of Moynihan, Buffett has been progressively offloading shares of the bank.

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At the age of 93, Buffett mentioned in April 2023 that he had no immediate plans to sell Bank of America shares, expressing his admiration for Moynihan during a CNBC interview. However, the recent sales suggest a shift in strategy. The bank’s shares have seen a 21% increase so far this year, just slightly below the 22.6% rise in the S&P 500 Banks Index, which measures the performance of large-cap banks.

[Disclaimer: This article is based on publicly available information and is intended for general informational purposes only. It should not be construed as financial or investment advice.]