Buffett’s Banking Move Continues

  • Berkshire Hathaway sold 21.6 million Bank of America shares for $862 million
  • Reduced its stake to 10.5% of the banking company’s stock
  • Average price per share was around $40
  • Bank of America stock down 1% since mid-July
  • Berkshire has sold over 20% of its holding in six trading sessions
  • CEO Warren Buffett may aim for stake below 10% or even lower
  • Potential stop selling at initial stake level of 700 million shares

Berkshire Hathaway has continued its sale of Bank of America shares, reducing its stake in the company to 10.5%. The conglomerate sold 21.6 million shares for $862 million at an average price of around $40 per share. Berkshire now owns 814.3 million shares worth $32 billion. Bank of America’s stock has dropped 1% since July and 10% overall. The company has sold over 20% of its holding in the past six trading sessions, lowering its stake by approximately 220 million shares since mid-July. As a holder of more than 10%, Berkshire must file with the SEC within two business days of changes to its Bank of America stake. CEO Warren Buffett may aim to reduce it further, potentially down to its initial 700 million share level from 2017.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Berkshire Hathaway’s reduction of its stake in Bank of America, citing relevant details such as the number of shares sold, the value of the transaction, and the reason behind the filing requirement. It also includes historical context about Berkshire’s initial investment in Bank of America in 2017.
Noise Level: 3
Noise Justification: The article provides relevant information about Berkshire Hathaway’s reduction in its stake in Bank of America and the reasons behind it, without any unnecessary or irrelevant content.
Public Companies: Berkshire Hathaway (BRK.A), Bank of America (BAC)
Key People: Warren Buffett (CEO)

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Financial Relevance: Yes
Financial Markets Impacted: Bank of America stock
Financial Rating Justification: The article discusses Berkshire Hathaway’s reduction in its stake in Bank of America, which impacts the financial markets and specifically the value of Bank of America’s stock.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article and it doesn’t meet the criteria of an extreme event happening in the last 48 hours.
Deal Size: 862000000
Move Size: The market move size mentioned in this article is a decrease of more than 20%, or about 220 million shares, in Berkshire Hathaway’s stake in Bank of America since it began selling the stock two months ago. Additionally, Bank of America stock was down 1% on Tuesday to $39.45 and has been off about 10% since Berkshire started reducing its holding aggressively in mid-July.
Sector: Finance
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.barrons.com