What signal? "Stock God" once again reduces holdings!
On Tuesday, Buffett disclosed a reduction in his holdings of Bank of America shares, cashing out a total of $5.4 billion. Berkshire Hathaway reduced its holdings by $982 million, decreasing its stake by nearly 13%. Despite considering this investment as an endorsement of Bank of America's CEO, Buffett has remained silent on this 2011 investment. Berkshire currently still holds 903.8 million shares of Bank of America stock, valued at $35.9 billion. In addition, Berkshire's cash reserves amount to $189 billion, expected to soon become the ninth company globally with a market value exceeding $1 trillion
On Tuesday, "Stock God" Buffett disclosed that he continues to reduce his stake in Bank of America, cashing out $5.4 billion.
Berkshire Hathaway reduced its holdings of Bank of America stock by $982 million, further reducing its investment in the second largest bank in the United States. According to documents, these sales occurred on August 23, 26, and 27.
Since mid-July, his Berkshire Hathaway company has reduced its stake in Bank of America by nearly 13% through a series of selling actions, cashing out $5.4 billion.
Buffett has remained silent on the divestment of this highly profitable investment, which began in 2011 when the stock was trading near $5. Before the earlier sell-off, Bank of America's stock price had risen 31% this year. Subsequently, Bank of America's stock price fell by 10%.
This series of sell signals indicates that Buffett is withdrawing from an investment that has long been seen as an endorsement of the leadership of Bank of America CEO Moynihan. The 93-year-old investor has praised Moynihan on several occasions in public.
Berkshire Hathaway remains the largest shareholder of the bank, currently holding 9.038 billion shares valued at $35.9 billion (based on Tuesday's closing price).
Buffett has also made other notable moves in the market. In the second quarter, Berkshire Hathaway sold over 389 million shares of Apple, but still holds a significant 400 million shares.
Berkshire Hathaway has accumulated a record $189 billion cash reserve and continues to increase its investment in short-term Treasury bills. According to the latest filings, the company now holds more Treasury bills than the Federal Reserve. Some market analysts believe that this cash reserve does not indicate a bearish outlook or an imminent market crash.
It is worth noting that Berkshire Hathaway is set to become the ninth company globally to reach a valuation of $1 trillion. According to Dow Jones market data, as of Tuesday's close, the group's total market value is close to $993 billion, just $7 billion away from this milestone. Since the beginning of 2024, Berkshire Hathaway's total market value has increased by approximately $218 billion, surpassing the total market value of iconic American companies like American Express