Buffett's Berkshire cuts stake in BofA to below 10%
Oct 10 (Reuters) -Billionaire Warren Buffett's Berkshire Hathaway BRKa.N unloaded more Bank of America BAC.N stock this week that takes its stake in the U.S. banking giant below 10%.
Berkshire sold 9.5 million shares worth $382.4 million for this week, according to a regulatory filing on Thursday.
The U.S. Securities and Exchange Commission requires shareholders that own more than 10% of a company to disclose stock purchases and sales within two business days.
Now investors at Bank of America must likely wait for Berkshire's quarterly financial reports or quarterly stock holdings disclosures to learn if the Omaha, Nebraska-based company sold more.
It started trimming the stake in mid-July when it sold about 33.9 million shares for around $1.48 billion. Till then, the investment giant had netted more than $10 billion.
BofA, however, is not the only stock that Buffett has dumped recently. Earlier this year, Berkshire halved its stake in technology behemoth Apple AAPL.O.
At Berkshire Hathaway's annual meeting in May, Buffett said selling made sense as the federal tax rate on capital gains could grow depending on who wins the U.S. presidential election.
Buffett, one of the world's most revered investors, first invested in Bank of America back in 2011 when he purchased $5 billion worth of its preferred stock.
The bank will report results next week, along with peer Citigroup C.N, with investors keeping a close eye on the potential impact from higher deposit costs and tepid loan demand.
Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shailesh Kuber
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
