Buffett’s Aggressive Selling Impacts Bank of America Shares
- Berkshire Hathaway sells $760 million worth of Bank of America stock
- Stake drops to $34.7 billion
- Sales on nine straight trading sessions
- Reduced stake by 16% since mid-July
- Warren Buffett oversees Berkshire’s equity portfolio
- Bank of America stock down 0.9% to $40.14
- Stock off 10% from July peak
Berkshire Hathaway has continued its sales of Bank of America shares, selling about $760 million worth of stock and reducing its stake in the banking company to $34.7 billion. The company sold 18.7 million shares on Tuesday, Wednesday, and Thursday, bringing its holdings down to 864 million shares, an 11.1% stake. Berkshire Hathaway has been selling stock since mid-July and has cut its stake in the bank by about 16%. The company needs to report sales within two business days if it holds more than 10% of the bank’s shares. Since July, Berkshire has sold a total of $7 billion worth of Bank of America stock. It aims to get its stake under 776 million shares to avoid such reporting requirements. Warren Buffett, who oversees Berkshire’s $300 billion equity portfolio, has been an aggressive seller since mid-July, impacting Bank of America’s stock performance. The stock fell 0.9% to $40.14 on Thursday and is down about 10% from its July peak.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Berkshire Hathaway’s sales of Bank of America shares, including specific numbers and details such as the number of shares sold, the average price per share, and the reason behind the sales. It also mentions Warren Buffett’s potential stopping point for selling shares. However, it lacks a direct source or confirmation from Berkshire Hathaway or Warren Buffett themselves.
Noise Level: 3
Noise Justification: The article provides relevant information about Berkshire Hathaway’s recent sales of Bank of America shares and its impact on the stock price, but it lacks analysis or context for why this is happening and what it might mean for the future. It does not explore the consequences of Buffett’s decisions or provide actionable insights.
Public Companies: Berkshire Hathaway (BRK.A), Bank of America (BAC)
Key People: Warren Buffett (CEO of Berkshire Hathaway)
Financial Relevance: Yes
Financial Markets Impacted: Bank of America stock
Financial Rating Justification: The article discusses Berkshire Hathaway’s sale of Bank of America shares, which impacts the financial markets and the company itself.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.
Deal Size: 760000000
Move Size: The market move size mentioned in this article is a 16% reduction in Berkshire Hathaway’s stake in Bank of America since it began unloading the stock in mid-July, and a 10% decrease in Bank of America’s stock price from its July peak.
Sector: Finance
Direction: Down
Magnitude: Large
Affected Instruments: Stocks
Image source: JonClee86 / Own work.
Reported publicly:
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