news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

since mid-july, "stock god" warren buffett has been selling shares of bank of america, the second largest bank in the united states, adding more than $6 billion to the huge cash reserves of berkshire hathaway, which he runs.

according to a new document filed with the sec last friday, berkshire hathaway sold a total of 21.1 million shares of bank of america at an average price of $40.24 on wednesday, thursday and friday last week, cashing in about $850 million.

berkshire has sold bank of america shares for six consecutive trading days. since the current round of reduction began on july 17, berkshire has sold bank of america shares in 21 of the past 33 trading days.

overall,berkshire has sold about 150 million shares of bank of america, cashing in about $6.2 billion (about 44 billion yuan), and the reduction ratio has reached 14.5%.。

bank of america is berkshire hathaway's third-largest holding, accounting for about 11% of its portfolio.

after the latest sale,berkshire remains bank of america's largest shareholder, holding 882.7 million shares worth nearly $36 billion, or 11.4% of the company's stock.。

once berkshire's stake in bank of america drops below 10%, it will no longer be required to disclose transactions within two business days as it does now. buffett prefers to buy and sell stocks without quick public disclosure.

berkshire hathaway's investment in bank of america began in 2011 when the stock was trading at about $5. before buffett's massive sell-off, the company's stock had risen 31% this year. however, since the sell-off began, the stock has fallen nearly 10%, narrowing its year-to-date gain to 21%, now trading at $40.75.

buffett said last year that although he was concerned about the entire banking industry, he did not want to sell bank of america shares and that he "very much" liked bank of america ceo brian moynihan. however, he has been "clearing out" his holdings in the stock since this summer.

so far, buffett himself has remained silent on the reasons and intentions for reducing his holdings in bank of america. speculations include that bank of america is overvalued and that buffett may be preparing for a shift in the federal reserve's monetary policy.

buffett's selling of bank of america may not be over yet, as he has a habit of selling stocks when he starts to sell them, eventually clearing them out.

it is not clear whether berkshire will sell off its bank of america holdings. however, in recent years, berkshire has sold off shares of several banks, including u.s. bancorp, wells fargo and bank of new york mellon.

last friday, buffett celebrated his 94th birthday. berkshire's market value closed above $1 trillion for the first time last wednesday, making it the first non-tech company in the united states to reach this milestone. it seems to be an early gift to buffett's birthday. by the end of the second quarter, berkshire's cash reserves reached a record $277 billion.