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Highlights
- Berkshire Hathaway reduced its stake in Bank of America, generating $10 billion U.S.
- The company purchased Bank of America stock at $14 U.S. per share, which is now valued at $40.06 U.S. per share.
- Berkshire Hathaway's Class B shares have seen a 25% increase this year.
Berkshire Hathaway (NEO:BRK), a multinational holding company, has made significant changes to its financial holdings. The company, led by Warren Buffett, has notably reduced its stake in Bank of America, a major player in the financial sector. Berkshire’s decision to lower its position in the bank follows several years of steady accumulation.
Berkshire Hathaway's Stake Reduction in Bank of America
Berkshire Hathaway began selling its Bank of America stock in recent months, lowering its stake from 13.1% to 10.1%. The company first acquired Bank of America shares in 2011 and had continued to grow its position until this summer. The stock, purchased at an average price of $14 U.S. per share, is now trading at over $40 U.S. per share.
Financial Performance of Bank of America Stock
Bank of America has experienced notable stock price growth, with a 52-week high of $44.44 U.S. reported in July. This price increase came after the bank announced its second-quarter financial results. The stock’s current price of $40.06 U.S. reflects a significant appreciation from Berkshire Hathaway’s initial purchase price, leading to substantial gains for the holding company.
Berkshire Hathaway's Class B Share Performance
While reducing its position in Bank of America, Berkshire Hathaway's Class B shares have also performed well. This more affordable share class has seen a rise of 25% in value so far this year. The shares are currently priced at $453.80 U.S., reflecting the continued strong performance of Berkshire Hathaway’s diversified portfolio across various industries.
Current Holdings in Bank of America
Despite the recent sales, Berkshire Hathaway still retains a large position in Bank of America. The company now holds approximately 784.55 million shares, valued at over $31 billion U.S.
