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buffett continues to reduce his holdingsbank of americashares.

the latest documents show that berkshire hathaway sold bank of america continuously from september 17 to 19, raising us$896 million (approximately rmb 6.3 billion).

sales of 57 billion yuan in 2 months

buffett continues to reduce his stake in bank of america

berkshire hathaway has submitted documents to regulators several times over the past two months to sell bank of america shares.

since july 17,berkshire hathaway has sold 1.97 billion shares of bank of america, a 19% reduction, and raised a total of $8.09 billion (about 57 billion yuan).。

after the reduction, berkshire's holdings in bank of america were reduced to 836 million shares as of september 19. based on the latest closing price of $40.87 per share, berkshire's holdings in bank of america are worth $34.167 billion. berkshire may still be the largest shareholder of bank of america, holding 10.77% of the shares.

before july 17, berkshire hathaway held 1.033 billion shares of bank of america, accounting for 13.08% of the company.

buffett's stake in bank of america dates back to his investment in 2011.

as of friday's close, bank of america fell nearly 1.5% to close at $40.27.

in 2011, when bank of america's stock price was low, buffett's berkshire invested $5 billion in bank of america and received preferred shares and warrants. a few years later, bank of america increased its dividend payout ratio, and buffett converted it into common stock. data shows that since 2017, bank of america's dividend payout ratio has remained stable at more than 20% each year, with an average annual dividend rate of around 2%. after several adjustments, berkshire has gradually become the largest shareholder of bank of america. between 2020 and july this year, berkshire held 1.033 billion shares of bank of america, without reducing its holdings.

since 2011,bank of america's stock price has risen eightfold. a rough calculation shows thatberkshirethe $8.09 billion in funds returned plus the dividends over the years,its investment in bank of america has already paid back its investment cost。

largeselling all types of stocks

berkshire hathaway has nearly $2 trillion in cash

in recent months, buffett has significantly reduced his holdings in various stocks.

according to the report,berkshire hathaway reduced its holdings in the second quarterapplemore than 389 million shares, with a market value of approximately us$82 billion (approximately rmb 580 billion)the number of shares held decreased by 49.3% from the first quarter, and its share in the investment portfolio fell by more than 10 percentage points from the previous quarter.

berkshire also sold 6.12 million shares ($840 million) of cloud computing star snowflake and reduced its holdings by 4.37 million shares ($680 million).chevron; sold 2.65 million shares ($367 million) of financial holding company cof…

it is worth noting thatbuffett has sold stocks for seven consecutive quarters, and the total size of his u.s. stock holdings has shrunk。as of the end of june,berkshire's cash reserves are close to $277 billion (about 1.95 trillion yuan), this huge amount of cash mainly comes from the sale of large quantities of stocks, especially apple stocks.

even buffett is reluctant to buy more of his own shares. berkshire disclosed in august that its recent stock repurchases have slowed significantly after a large number of repurchases in previous quarters. according to the documents, berkshire repurchased about $345 million of shares in the second quarter.this was the smallest quarterly buyback since 2018。

“in summary,buffett seems to think the best investments right now are cash and treasury bonds。”

earlier, at the 2024 annual shareholders meeting, buffett had made it clear that relative to the available funds in the stock market and conflicts around the world,holding large amounts of cash is 'quite attractive'"we're happy to spend money, but it has to be something that has very little risk and can make us a lot of money."

buffett's continued adjustment of the investment portfolio seems to have been recognized by the capital market. on august 28,berkshire's market value exceeded $1 trillion for the first time, becoming the seventh u.s. listed company with a total market value of more than $1 trillionberkshire hathaway's stock price hit an all-time high on september 4.

edit|||duan lian yi qijiang

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daily economic news is compiled from china business network, china securities journal, china securities journal, public information, etc.

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