

Market Analysis
Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRKa, NYSE: BRKb) has been gradually reducing its stake in Bank of America Corp (NYSE: BAC) since mid-July, with recent sales indicating a slower pace. According to an SEC filing on Wednesday, Berkshire sold $338 million worth of shares this week, marking the 13th consecutive round of sales. On Tuesday and Wednesday, the average selling price was $39.40 per share, one of the lowest prices seen since the sell-off began, as reported by Bloomberg News on Thursday.
This is a significant drop from previous rounds, where Berkshire had been offloading around $750 million worth of shares per round over the past few months.
The most recent divestments follow sales that took place in late September. Between September 25-27, Berkshire sold more than $460 million in Bank of America stock. These sales included 2.3 million shares at an average price of $39.27 on September 25, 5.5 million shares at $39.46 on September 26, and 3.9 million shares at $39.52 on September 27.
Prior to that, from September 20-24, Berkshire sold an additional $862 million worth of shares, including 10.2 million shares on September 20 at $40.36 per share, 4.9 million shares on September 23 at $39.94, and 6.4 million shares on September 24 at $39.49. Share prices during this period ranged between $39.49 and $40.36.
Despite this series of sell-offs, Berkshire continues to hold the largest stake in Bank of America, retaining a 10.2% interest valued at over $31 billion. Buffett, who is now 94, has not publicly explained the reasons for these sales, the report added.
Paraphrasing text from "Investing" all rights reserved by the original author.