Warren Buffett’s Berkshire Hathaway cuts stake in U.S. banks for first time since 2019 after strong rally | Wilnesh News

Berkshire Hathaway trim its huge Bank of America Owning the stock for the first time in 4.5 years following the bank’s strong run in 2024.

Warren Buffett’s group sold 33.9 million Bank of America shares on Wednesday, Thursday and Friday at an average price of $43.56 and a value of nearly $1.5 billion. Supervision filing show.

This is the first time the Omaha, Nebraska-based conglomerate has reduced its stake since the fourth quarter of 2019. Still, Bank of America remains Berkshire Hathaway’s second-largest equity position, behind apple, holds 999 million shares and has a market value of nearly $43 billion. At the same time, Berkshire remains the largest shareholder of Bank of America, holding 10.8% of the shares.

Berkshire Hathaway may be taking profits as Bank of America shares are up 27.4% so far this year, reaching their highest level since March 2022. Hill reduced his holdings of Apple by 13%.

Bank of America shares fell slightly on Monday following the news.

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The Oracle of Omaha’s takeover of Bank of America has become one of Wall Street’s most beloved stories. In 2011, the legendary investor bought $5 billion worth of the bank’s preferred stock and warrants to bolster confidence in the bank as it grappled with losses related to subprime mortgages in the wake of the financial crisis.

Buffett later revealed that he came up with the idea while taking a bath in the bathtub.

“By the way, the Bank of America acquisition is indeed real, and as I sat in the bathtub, I thought… Bank of America, would they be interested in this preferred stock,” he said at the 2017 Berkshire Hathaway annual meeting. interest.

The 93-year-old investor said he was attracted by CEO Brian Moynihan’s leadership and the franchise’s profitability.

Moynihan later recalled that Buffett initially tried to contact him through Bank of America’s public phone lines, but was rejected by the call center. Despite the chaos, the deal was struck within hours, he said.