Warren Buffett speaks during Berkshire Hathaway’s Annual Shareholders Meeting in Omaha, Nebraska on May 4, 2024.
CNBC
Warren Buffett Berkshire Hathaway offloaded another chunk of Bank of America stock, bringing total sales to more than $ 7 billion since mid-July and reducing the stock to 11%.
The Omaha, Nebraska-based conglomerate sold a total of 5.8 million BofA shares in separate sales Friday, Saturday and Tuesday for nearly $228.7 million at an average selling price of $39.45 per share, according to a new regulatory filing.
The latest action extended Berkshire’s record selling streak to 12 consecutive sessions, matching the 12 consecutive sessions from July 17 to August 1.
Berkshire has sold more than 174.7 million shares of the Charlotte, North Carolina-based bank for $7.2 billion, with 858.2 million shares remaining, or 11.1% of shares outstanding. BofA has fallen to the No.3 spot in the list of Berkshire’s Top Holdings, behind Apple and American Express. Before the selling spree, BofA had long been Berkshire’s second-largest shareholder.
Moynihan on Buffett
Buffett famously bought $5 billion of BofA preferred stock and warrants in 2011 after the financial crisis. He converted those warrants in 2017, making Berkshire the largest shareholder in BofA. The “Oracle of Omaha” then added another 300 million shares to the bet around 2018 and 2019.
BofA CEO Brian Moynihan made rare comments about Berkshire’s sale Tuesday, saying he did not know Buffett’s motivations for the sale.
“I don’t know what exactly they’re doing, because frankly, we can’t ask. We’re not going to ask,” he said during the Barclays Global Financial Services Conference, according to a transcript on FactSet. “But on the other hand, the market absorbs stocks … we buy a share of stocks, and life goes on.”
Bank of America
BofA shares have fallen just 1% since the start of July, and the stock is up 16.7% this year, slightly outpacing the S&P 500.
Moynihan, who has led the bank since 2010, praised the 94-year-old’s shrewd investments in the bank in 2011, which helped boost confidence in lenders struggling with losses linked to subprime mortgages.
“They have been good investors for our company, and made the company stable when we needed it,” he said.
To illustrate how profitable Buffett’s investments are, Moynihan said that if investors bought the bank’s stock the same day Buffett did, they would be able to catch the low price of $5.50 per share. Shares last traded at just under $40 each.
“He just had the guts to do it in a big way. And he did. And it’s been a great return for him. We’re glad he got it,” Moynihan said.
— CNBC’s Alex Crippen contributed reporting.
