WARREN Buffett sold an additional US$982 million of Bank of America (BofA) stock as his conglomerate continues to shrink its investment in the second-largest US bank.
His Berkshire Hathaway has trimmed the stake by a total of almost 13 per cent in a series of sales since mid-July, generating US$5.4 billion in proceeds. Berkshire disclosed the latest disposals in a regulatory filing late on Tuesday (Aug 27), detailing sales on Aug 23, 26 and 27.
Buffett has held silent about his reasoning while whittling the highly profitable bet – an investment that began when the stock was trading near US$5 in 2011. The shares were up 31 per cent this year before the selling spree. They have since slid 10 per cent to US$39.67.
The string of sales signals Buffett’s biggest pullback from an investment that long served as a stamp of approval on the leadership of Bank of America chief executive officer Brian Moynihan, whom the 93-year-old investor has repeatedly praised in public.
Berkshire still remains the bank’s biggest stockholder – with 903.8 million shares worth US$35.9 billion, based on Tuesday’s closing price. BLOOMBERG
