Warren Buffett continues to sell stock in Bank of America (BAC), reducing his stake in what had previously been the second largest position in his equity portfolio.
Buffett’s holding company Berkshire Hathaway (BRK.A / BRK.B) sold 19.2 million shares of Bank of America between July 30 and Aug. 1 for total proceeds of $779 million U.S. based on an average selling price of $40.52 U.S. per share.
The sales were disclosed in a regulatory filing made with the U.S. Securities and Exchange Commission (SEC).
Berkshire Hathaway has sold Bank of America stock for 12 consecutive days, with sales totaling $3.80 billion U.S.
Despite the recent sales, Berkshire still owns 942.4 million shares of Bank of America worth $37.20 billion U.S. Berkshire remains the lender’s biggest shareholder with a 12% stake.
However, Bank of America is now Berkshire Hathaway’s third largest position after Apple (AAPL) and American Express (AXP).
Previously, Bank of America had been Berkshire’s second biggest holding.
Through Berkshire Hathaway, Buffett oversees a massive stock portfolio that’s currently valued at $400 billion U.S.
Buffett first bought $5 billion U.S. worth of Bank of America stock in 2011 during the aftermath of the 2008-09 financial crisis, shoring up confidence in the lender at the time.
Buffett has publicly praised Bank of America’s valuation and management team led by chief executive officer (CEO) Brian Moynihan.
It is not clear why Buffett has been selling Bank of America stock lately. Although he is sitting on a big profit as Berkshire purchased the stock at an average price of $14 U.S. per share and it is currently trading at $39.50 U.S. a share, having gained 17% year-to-date.
Since the pandemic struck in 2020, Buffett has completely sold his stakes in several other U.S. banks, including JPMorgan Chase (JPM) and Goldman Sachs (GS).
Berkshire Hathaway’s Class B stock is up 19% this year and currently trading at $431.81 U.S. per share.