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Buffett Sells More Than $3 Billion in Bank of America Shares

Warren Buffett's American holding company Berkshire Hathaway increased sales of Bank of America shares to more than $3 billion in July, Reuters reports.

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Berkshire sold 18.4 million shares of the bank for $767 million in the period from July 25 to July 29. Since July 17, the company has sold 71.2 million shares of Bank of America for $3.05 billion, reducing its stake in this bank by 6.9% to 961.5 million shares.

Buffett's conglomerate still has approximately 12.4% stake in Bank of America, worth $39.5 billion. It must report sales until the share falls below 10%.

Bank of America stock growth

Share price Bank of America is up nearly two-thirds since the end of October. The shares are trading at 1.2 times book value after trading below book value for most of the last decade.

Berkshire bought $5 billion of Bank of America preferred stock in 2011 as some investors worried Will the bank have enough capital after paying off huge mortgage and legal obligations following the 2008 financial crisis?

Buffett swapped preferred stock for common stock in 2017 after exercising warrants and ultimately spent $14.6 billion on Bank of America. These shares were worth more than $45 billion when Berkshire began selling them.

minfin.com.ua

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