Warren Buffett Continues to Shrink Bank of America Stake, Sells Additional $982 Million
Berkshire Hathaway's Latest Sale Brings Total Stake Reduction to $1.8 Billion
In a move that signals a further reduction in Berkshire Hathaway's exposure to the banking sector, Warren Buffett has sold an additional $982 million worth of Bank of America Corp. (BAC) shares.
Buffett's Long-Term Strategy
Buffett's decision to trim his stake in Bank of America is consistent with his long-term investment strategy of focusing on companies with strong fundamentals and undervalued share prices.
In recent years, Berkshire Hathaway has been increasing its investments in sectors such as energy and technology, while reducing its exposure to the financial sector.
Market Impact
The sale of such a large block of shares has had a noticeable impact on the market, with Bank of America's stock price falling by 1.5% in after-hours trading.
However, analysts believe that the long-term impact on Bank of America's share price will be minimal, as the sale represents only a small fraction of the bank's outstanding shares.
Key Takeaways
- Warren Buffett has sold an additional $982 million of Bank of America stock.
- The sale is part of Berkshire Hathaway's ongoing strategy to reduce its exposure to the banking sector.
- The market impact of the sale has been limited, with Bank of America's stock price falling by only 1.5% in after-hours trading.
Sources
- Bloomberg: Buffett Sells More Bank of America Shares as Berkshire Cuts Stake
- Reuters: Warren Buffett Sells More Bank of America Shares
- CNBC: Warren Buffett Sells Nearly $1 Billion in Bank of America Stock
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