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"stock god" buffett's berkshire hathaway's "clearance and reduction" of bank of america (bank of america) continues, with the shareholding ratio further reduced to 10.3%, approaching the critical critical point of the regulatory threshold.

according to a new document filed with the sec,berkshire hathaway reduced its holdings of bank of america stocks for three consecutive trading days on september 25, 26, and 27, 2024, totaling 11.678 million shares, cashing out approximately us$461 million.bank of america is berkshire hathaway's third-largest holding.

in fact, since mid-july,buffett has sold bank of america more than a dozen times, cashing out a total of about us$9.4 billion, and seems to be clearing his position. after the latest sell-off, berkshire hathaway still holds 10.3% of the second-largest u.s. bank, getting closer to the "regulatory tipping point" of 10%.

it is reported that,once his holdings fall below that threshold, buffett will no longer be required to disclose his transactions within two business days as he currently does.in fact, he himself prefers to buy and sell stocks without quick public disclosure.

some analysts say that if buffett sticks to his current path, his holdings in bank of america will fall below 10% in about a week.this freed him from having to disclose the transaction immediately. once berkshire's holdings fall below this level, it can instead provide a quarterly update.

but even so,based on friday's closing price, berkshire's remaining stake in the bank is worth nearly $32 billion, making it still the largest shareholder of bank of america.

in 2011, buffett established berkshire's investment in bank of america through a $5 billion deal of preferred stock and warrants. buffett has been adding to his stake in bank of america for years and has praised the bank's leadership, but so far he has not given a public explanation for his recent decision to reduce his holdings.

some analysts believe that the reasons include bank of america’s overvaluation and the federal reserve’s interest rate cut after four and a half years. it is understood that bank of america is very sensitive to cyclical changes in interest rates, perhaps even more sensitive than other banking industry peers.

in march 2022, when the federal reserve's most aggressive rate hike cycle in 40 years began, bank of america reaped huge gains. the fed's "aggressive range" of 50 basis points last week and potential future rate cuts mean bank of america's net interest income could be hurt more than its peers.

as for whether buffett's continuous selling really means that he wants to clear out his position in bank of america, it is not yet known. but as is his custom, when he starts selling a stock, he eventually liquidates it. moreover, in recent years, berkshire has liquidated stocks in many banks, including u.s. bank, wells fargo, and bank of new york mellon.