From CNBC: 2024-10-10 18:19:00

Warren Buffett’s Berkshire Hathaway reduced its stake in Bank of America to below 10%, selling over 9.5 million shares. This decreased holdings to 775 million shares. Now under the 10% threshold, Berkshire is not required to report transactions timely. BofA’s shares rose 1%, still making Berkshire the biggest institutional investor.

Buffett bought $5 billion of BofA preferred stock in 2011, converting to common stock in 2017. More shares were added in 2018 and 2019, making Berkshire the largest shareholder. Recent sales followed Buffett’s skepticism on bank ownership after dumping other banking holdings in recent years.

Buffett’s cautious approach to banks stems from the 2008 and 2023 financial crises, impacting confidence in the system. Changes in deposit stickiness and challenges from digitalization and fintech have made bank ownership a concerning matter for the Oracle of Omaha.

Read more: Berkshire slashes Bank of America stake to under 10%