Buffett Sells Bank of America Shares, Nears $1B, Close to 10% Reporting Threshold
Berkshire Hathaway,led by 94-year-old Warren Buffett,has been aggressively selling off its shares in American banks for several months.
The latest sale includes the period from October 3-7,during which Berkshire Hathaway reduced its stake in Bank of America by 9.570980 million shares,cashing out $383 million.Now,Buffett's ownership in Bank of America has been reduced to 10.1%,but he remains the bank's largest shareholder.
This means that when Buffett sells just a little more,reducing his stake in Bank of America below 10%,he will not have to disclose the transaction within two working days (usually within a few days) as he would when his ownership percentage is above 10%.Typically,he only needs to disclose relevant information in each quarterly report.
Previously,Berkshire Hathaway began to massively reduce its shares in Bank of America since mid-July this year,and the reason has not been officially disclosed.Since then,the bank's stock price has been under pressure.
The latest data from Bloomberg shows that Berkshire Hathaway has cashed out as much as $10 billion by selling Bank of America shares.However,even after a large amount of sales,the shares of Bank of America held by Berkshire Hathaway are still substantial,with a total value of $31.35 billion.
There are various opinions in the market about Buffett's motivation to reduce his shares in Bank of America.
Combining the fact that Buffett's cash reserves have soared to a historical high,along with the halving of his Apple holdings,some people believe it may be due to unfavorable factors such as overvaluation of U.S.stocks,the risk of a recession in the U.S.economy,and a long-term downward trend in the U.S.
Others believe that the U.S.regulatory authorities are strengthening their crackdown on fentanyl money laundering,and the scope of investigation of such behavior has expanded from the initial individual banks to major U.S.banks.
In October 2008,Buffett once called for "buying America," but this time,he is selling American assets at a worrying speed.
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