KUALA LUMPUR: The FBM KLCI erased earlier gains by midday as investors continued to take profit following a six-day rally in the closing days of 2024. At the midday break, the benchmark index was down 2.43 points to 1,630.44. The broader market, however, was positive with 506 gainers compared to 476 decliners, suggesting that investors had turned their attention to picking up bargains among the lower liners. Turnover was 2.4 billion shares valued at RM1.48bil. Investors continue to tread cautiously amid a suggestion by the Federal Reserve that there will be fewer rate cuts this year than initially projected, while the incoming Trump administration will fuel inflation with its growth policies. In China, the Shanghai Composite index dropped 0.46% to 3,247 while Hong Kong's Hang Seng gained 0.87% to 19,794. Singapore's Straits Times fell 1.71% to 3,799. Japan's stock exchange remained closed for a national holiday. On Bursa Malaysia, laggards included Nestle down ...
Warren Buffett’s Berkshire Hathaway Inc. disclosed its third disposal of Bank of America Corp shares this month, reducing its massive stake in the lender by more than $3 billion.
From July 25 to 29, Berkshire sold $767 million of the stock, according to a regulatory filing Monday. This, along with previous sales, decreased Berkshire's holdings by 6.9% this month. Despite the reduction, Berkshire still holds almost 962 million shares, valued at $39.5 billion at Monday’s closing price.
This marks Buffett’s largest pullback from a long-held investment that has symbolized confidence in Bank of America CEO Brian Moynihan. The stock has risen 22% this year, allowing the 93-year-old investor to cash out profitably.
Neither Berkshire nor Bank of America representatives commented on the sales.
Buffett's initial investment in 2011, during a tumultuous period for the bank following the 2008 financial crisis, included $5 billion in preferred stock and the right to buy common shares. His endorsement alleviated public doubts and increased the stock value, resulting in substantial profits for Berkshire.
Over the following decade, Berkshire continued to invest, eventually surpassing a 10% stake with regulatory approval. Last year, while adjusting other financial-industry investments, Buffett expressed his intention to retain his stake in Bank of America, praising CEO Brian Moynihan.
Key Takeaways:
- Berkshire Hathaway sold over $3 billion worth of Bank of America shares this month.
- Latest sales reduced Berkshire's stake by 6.9%.
- Despite reductions, Berkshire still holds shares worth $39.5 billion.
- Buffett initially invested $5 billion in Bank of America in 2011, supporting the bank during a challenging period.
- Stock has risen 22% this year, allowing profitable cash-out.
- Buffett previously indicated a strong preference to retain his stake in Bank of America.
Comments
Post a Comment