Warren Buffett’s Berkshire Hathaway Inc. has been making headlines with its recent rapid-fire sales of Bank of America Corp. stock. However, investors may soon see less transparency in these transactions as Berkshire continues to reduce its stake in the bank.
As of the latest disclosures, Berkshire’s stake in Bank of America has been reduced to 11.4%. Once the stake falls below the 10% threshold, US regulations allow Berkshire to delay public disclosures of transactions, providing a potential relief from the drama that has been impacting BofA’s share price.
Since mid-July, when Buffett began the selling spree without providing a clear reason, Berkshire has generated $6.2 billion from the disposals. In the most recent announcement, Berkshire sold approximately 21 million shares for $848 million from August 28 through 30.
It is worth noting that Buffett initially invested in Bank of America back in 2011 with a $5 billion deal for preferred stock and warrants. Since then, Berkshire Hathaway has become the bank’s largest shareholder, with a stake valued at around $36 billion based on Friday’s closing price.
At Extreme Investor Network, we understand the importance of staying informed about major investors like Warren Buffett and the impact their decisions can have on the market. Stay tuned for more updates on Berkshire Hathaway’s investment activities and how they may influence your investment strategies.