Berkshire unloads another chunk of Bank of America as CEO Moynihan lauds Buffett as great shareholder
From CNBC: 2024-09-11 08:26:21
Warren Buffett’s Berkshire Hathaway sells off more Bank of America shares, bringing total sales to over $7 billion since mid-July. The conglomerate shed 5.8 million shares last week, reducing its stake to 11%. BofA falls to the third spot on Berkshire’s top holdings list behind Apple and American Express.
BofA CEO Brian Moynihan comments on Buffett’s sales, expressing uncertainty about the motivation but acknowledging the market’s absorption of the stock. Shares of Bank of America have dipped around 1% since July but have seen a 16.7% increase this year, outperforming the S&P 500. Buffett’s investment in 2011 helped stabilize the bank amidst financial struggles.
Moynihan praises Buffett’s investment, noting the significant return on investment for the billionaire. If investors bought shares at the same time as Buffett, they would have paid $5.50 per share, significantly lower than the current price of nearly $40. Berkshire Hathaway’s strategic selling continues, impacting BofA’s position in the market.