Berkshire Reduces BofA Stake Below 10%

Warren Buffett's Berkshire Hathaway has significantly reduced its stake in Bank of America, selling over $10 billion worth of shares since mid-July and dropping its holdings to just below 10%. This strategic move allows Berkshire to bypass immediate SEC disclosure requirements for further sales, potentially keeping investors uninformed for months. The sales have pressured Bank of America's stock, which has underperformed compared to its peers in the KBW Bank Index. Analysts speculate that Buffett's actions might signal apprehensions about the banking sector's outlook amid economic uncertainties. Despite the sell-off, Berkshire remains Bank of America's largest shareholder with approximately $31 billion in stake value. Buffett has not publicly disclosed his reasons, but potential motives include recession fears and regulatory concerns.