Warren Buffett sells more Bank of America shares, cashing out nearly $10 billion, approaching the regulatory 10% exemption reporting threshold
During the period from October 3rd to 7th, Buffett once again reduced his holdings in Bank of America, cashing out $383 million. His shareholding ratio has dropped to 10.1%, but he still remains the largest shareholder of the bank. Since mid-July, he has cashed out approximately $10 billion in total. If he sells a little more, the stake in Bank of America will fall below 10%, and Berkshire Hathaway will no longer need to disclose the transaction in a timely manner
Warren Buffett, 94, has been selling a large amount of Bank of America stocks under Berkshire Hathaway for several consecutive months.
The latest selling activity includes a reduction of 9.57098 million shares of Bank of America stock from October 3-7, totaling a cash-out of $383 million. Currently, Buffett's stake in Bank of America has dropped to 10.1%, but he remains the largest shareholder of the bank.
This means that when Buffett sells a little more shares to bring his stake in Bank of America below 10%, he will not need to disclose the transaction within two working days (usually a few days) as required when the stake is above 10%. Typically, he only needs to disclose relevant information in quarterly reports.
Previously, Berkshire Hathaway has been significantly reducing its holdings of Bank of America stocks since mid-July this year, with the reasons still not officially disclosed. Subsequently, the bank's stock price has been under pressure.
The latest Bloomberg data shows that Berkshire has cashed out a total of $10 billion by selling Bank of America stocks. Despite the large amount of selling, Berkshire's holdings of Bank of America stocks still remain substantial, with a total value of $31.35 billion.
There are various speculations in the market regarding Buffett's motivation for reducing his stake in Bank of America.
With Buffett's cash reserves soaring to a historic high and the halving of his Apple holdings, some believe it may be due to factors such as overvaluation of US stocks, recession risks in the US economy, and the long-term downward trend in the US.
Others believe that the crackdown by US regulatory agencies on fentanyl money laundering is intensifying, with the investigation scope of such activities expanding from initially individual banks to major banks in the US.
Buffett's cash reserves hit a record high
In October 2008, Buffett called for "buying America," but this time, he is selling US assets at a concerning pace