Warren Buffett Dumps $337 Million in BAC Stocks - What’s Next for Bank of America?
Warren Buffett’s Major Sell-Off of Bank of America Stocks
On October 2, 2024, Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A, BRK.B) offloaded a staggering $337.9 million worth of Bank of America (NYSE: BAC) shares across three distinct sales. The most significant transaction occurred on September 30, during which Buffett sold 4.95 million shares at an average price of $39.61, totaling about $197 million. The subsequent sales on October 1 and 2 involved smaller volumes of 1.8 million and 1.7 million shares respectively, raising $72.4 million and $67.8 million.
Buffett's Ongoing Selling Trend
These sales follow a pattern of significant sell-offs by Buffett, who started divesting from Bank of America in late July. In this period, he has generated approximately $4.36 billion from BAC stocks. Despite withdrawing substantial sums, Buffett maintains a 10% stake in BAC, retaining over 720 million shares.
Market Reaction and Speculation
The reasons behind Buffett’s decision remain unclear, prompting speculation about his strategy. Industry leaders, like Bank of America CEO Brian Moynihan, express uncertainty regarding Buffett's choices, suggesting a possible broader approach by Berkshire Hathaway to reduce banking sector exposure. Given the current market climate, where major indices hover near all-time highs, Buffett's activity could signal preparation for a potential market dip.
Analysis of BAC Stock Performance
Despite the recent selling spree, Bank of America’s stocks have shown resilience, increasing by 15.07% since January. Current prices sit around $39.01 as of press time. However, concerns linger as BAC shares have dipped 4.15% over the last month.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.