Berkshire Hathaway Sells 41% Bank of America Stake, Boosts Smaller Holdings

Warren Buffett and Berkshire Hathaway have recently been reducing their stakes in several major stocks, including Bank of America, where they sold about 41% of their shares to manage tax implications and portfolio value. Despite trimming positions in companies like Apple, Berkshire Hathaway maintains a massive cash reserve of around $344 billion, positioning itself for significant future investments. One potential target for Buffett's next big move is MercadoLibre, a large Latin American e-commerce and financial services company valued at about $120 billion, fitting Berkshire's preference for sizable investments capable of impacting its trillion-dollar portfolio. Additionally, Berkshire Hathaway made a notable $1.6 billion purchase of UnitedHealth stock in the second quarter, signaling confidence in the healthcare sector amid inflation concerns. Apple remains a highly regarded stock according to Buffett's investment principles, scoring highly on models that emphasize long-term profitability and reasonable valuation. Overall, Buffett's recent portfolio adjustments reflect strategic positioning in response to tax expectations, market valuations, and growth opportunities in large-cap companies.