Buffett "clears out" Bank of America, unable to stop cashing out, with accumulated cash-out exceeding $10 billion USD

After months of massive selling of Bank of America's stock, "Stock God" Warren Buffett's Berkshire Hathaway's cash reserves have become even stronger.

According to a new filing submitted to the SEC, Berkshire Hathaway sold Bank of America stock for three consecutive trading days on October 3rd, 4th, and 7th, totaling 9.571 million shares and cashing out approximately $383 million. Bank of America is currently Berkshire Hathaway's third largest holding.

Statistics show that this is the 14th round of selling Bank of America stock disclosed by the company since mid-July. Buffett has cumulatively cashed out over $10 billion, indicating a trend towards liquidation.

After the latest round of selling, Berkshire Hathaway still holds about 10.1% of Bank of America's shares, valued at approximately $31.4 billion, maintaining its position as the largest shareholder but approaching the "regulatory threshold."

According to regulations, if the shareholding exceeds 10%, the transaction must be disclosed within 2 days; if the shareholding does not exceed 10%, there is no need to disclose the transaction immediately, usually waiting for several weeks to disclose in quarterly reports. In fact, Buffett himself prefers to buy and sell stocks without rapid public disclosure.

Analysis shows that excluding the impact of taxes, Buffett's total profit from selling Bank of America stock since mid-July, combined with dividends received since 2011, has exceeded the $14.6 billion spent on purchasing Bank of America shares.

For many years, Buffett has been increasing his holdings of Bank of America shares and praising the bank's leadership. However, he has not publicly explained his recent decision to reduce holdings.

At the Barclays Global Financial Services Conference last month, Bank of America CEO Brian Moynihan told the audience that he couldn't call Buffett directly to ask what he was doing, "because frankly, we can't ask, and we won't ask."

However, analysts believe that reasons for this include Bank of America's overvaluation and the Federal Reserve's rate cut action after four and a half years. It is understood that Bank of America is very sensitive to changes in interest rate cycles, even more so than other banking peers.

As to whether Buffett's consecutive selling behavior truly indicates a complete liquidation of Bank of America, it remains unknown. However, according to his habits, when he starts selling a stock, he eventually clears that stock. In recent years, Berkshire Hathaway has cleared stocks of many banks, including Wells Fargo, U.S. Bancorp, and Bank of New York Mellon.

Ash Shah, Chief Investment Officer and Senior Portfolio Manager at Summit Global Investments, commented, "In summary, Buffett seems to believe that the best investments currently are cash and government bonds."