Warren Buffettthe most followed financier and philanthropist in America and not only in the age of social media, continues to sell Bank of America sharesreducing its stake in the major US bank and further increasing the liquidity of its financial arm Berkshire Hathawaywhich reached record levels last summer.
Buffett is the most followed professional investor on Wall Street, so much so that he is rightly nicknamed The Oracle of Omaha and, even at his venerable age (94 years), his mind is still very clear and his judgement and his choices are always kept in check. great consideration throughout the financial world.
Transactions carried out on Bank of America
Berkshire has sold Bank of America shares for six consecutive sessions. According to a filing model, the latest operations recorded Wednesday, Thursday and Friday saw Buffett’s company sell 21.1 million shares at an average price of $40.24, for a value of 848.2 million of dollars.
Since it began reducing its stake on July 17, the financial firm has sold 150.1 million sharesover 21 of the last 33 sessions, equal to a 14.5% participation, for a value of 6.2 billion dollars (resulting in an average price of 41.33 dollars per share).
A nice chunk of his wallet
Even after these transactions, however, Berkshire remains largest shareholder of Bank of America with a 11.4% shareequal to 882.7 million shares, for a value of almost $100 million.
BofA is also the third largest turnout Berkshire’s stock market and represents more than 11% of its portfolio. With the latest share sales, Berkshire’s cash has grown further, having reached a record $277 billion at the end of June.
The Assumptions Behind the Share Sale
Meanwhile, the question is why the Oracle of Omaha is reducing its stake in BofA, given that, as of last year at the latest, Buffett had said he did not want to sell the title of the largest American bank, despite its concerns about the health of the banking sector.
BofA stock has certainly not shone so far, but it hasn’t been that bad either: to date, Bank of America gained 21% on Wall Street and its performance does not appear to be particularly brilliant, compared to the banking sector of the S&P 500 which rose by 22.6%.
