Ace investor Warren Buffett’s investment arm Berkshire Hathaway has dumped $1.5 billion worth of Bank of America (BAC) shares. The recent regulatory filings show that the billionaire offloaded 33.9 million Bank of America shares. The BAC stocks were sold at an average price of $43.56 per share. After the sale from Berkshire Hathaway, BAC stocks fell to $42.30 with a decline of 1.40%.
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The reduction is significant and has come as a surprise to the US stock market. Warren Buffett is known to hold stocks for the long term and not offload them mid-way. However, despite the sell-off, Warren Buffett is still the second-biggest holder of Bank of America stocks. Berkshire Hathaway holds a 10.8% stake in BAC after falling from the top position to the second due to the sell-off.
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Bank of America: Warren Buffett Sells $1.5 Billion Worth Stocks
Warren Buffett’s investment arm still holds 999 million shares of Bank of America despite the sell-off. The overall shares are currently valued at a whopping $43 billion with BAC trading at $42.30 on Tuesday. This is the first time that Berkshire Hathaway has sold Bank of America shares since the fourth quarter of 2019.
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The sale might influence the stock’s price on Tuesday’s opening bell and could remain under pressure in the charts. Apart from Bank of America, Warren Buffett has also reduced his holdings in the technology giant Apple this year. He sold Apple shares in the first quarter of 2024 reducing 13% of his overall holdings. He dumped 16 million shares and significantly cut his holdings in the tech giant.
Data shows that once Warren Buffett begins to cut his holdings, he often continues doing so and trims significantly. Therefore, the chances of Bank of America and Apple being offloaded by Berkshire Hathaway in the coming months remain high.