Warren Buffett has now turned his entire remaining US$34 billion stake in Bank of America Corp into pure profit, following a series of share disposals that have fully covered his original investment cost. According to a Thursday filing, Buffett’s Berkshire Hathaway Inc sold US$896 million worth of Bank of America shares this week, bringing total proceeds from stock sales and dividends to over US$14.6 billion, the amount Berkshire originally spent to build its position in the bank.
Buffett, now 94 years old, first invested in Bank of America in 2011 through a US$5 billion deal for preferred stock and warrants. The investment was converted into common shares in 2017 after the bank increased its dividend, and the stock's value has grown substantially since.
Berkshire’s ownership in Bank of America may soon dip below the 10% regulatory threshold, which would allow the company to delay disclosures of share transactions. Buffett has offered no public explanation for his recent share sales, and Bank of America CEO Brian Moynihan noted at a recent conference that while the bank is aware of the sales, they do not seek direct commentary from Buffett.
The Bank of America stock remains a core holding for Berkshire, even as Buffett gradually reduces the position.
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