Finance
Buffett’s Berkshire sells $3.8 billion worth of Bank of America in 12-day selling spree
Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, May 4, 2024.
CNBC
Warren Buffett is not done selling Bank of America.
Berkshire Hathaway shed a total of 19.2 million BofA shares on Tuesday, Wednesday, and Thursday for almost $779 million at an average selling price of $40.52 per share, according to a new regulatory filing.
The conglomerate has now been offloading the bank stock for 12 consecutive days with total sales now exceeding $3.8 billion. Its remaining 942.4 million shares have a market value of $37.2 billion at Thursday’s close of $39.50.
As of Thursday’s close, Bank of America fell to the No.3 spot on Berkshire’s list of top holdings, trailing behind Apple and American Express, which is currently valued at $37.7 billion. Before the selling spree, BofA had long been Berkshire’s second biggest holding.
Berkshire remains the bank’s largest shareholder with a 12.1% stake.
The bank stock has dropped 5.2% so far this week, going as low as $38.98 in Thursday’s trading as recession fears plague the financial sector. Year to date, BofA is up more than 17%, outperforming the S&P 500.
Bank of America
Buffett famously bought $5 billion worth of BofA’s preferred stock and warrants in 2011 in the aftermath of the financial crisis, shoring up confidence in the embattled lender struggling with losses tied to subprime mortgages. He converted those warrants in 2017, making Berkshire the largest shareholder in BofA, vowing that it would be a “long, long time” before he would sell.
The legendary investor said then that he liked the business, valuation and management of the Charlotte-based bank “very much.”
BofA, under the leadership of Brian Moynihan since 2010, recently reported blowout results for the second quarter that showed rising investment banking and asset management fees as well as a positive outlook on net interest income.
Money manager John Davi is positioning for challenges tied to President-elect Donald Trump’s tariff agenda.
Davi said he worries the new administration’s policies could be “very inflationary,” so he thinks it is important to choose investments carefully.
“Small-cap industrials make more sense than large-cap industrials,” the Astoria Portfolio Advisors CEO told CNBC’s “ETF Edge” this week.
Davi, who is also the firm’s chief investment officer, expects the red sweep will help push a pro-growth, pro-domestic policy agenda forward that will benefit small caps.
It appears Wall Street agrees so far. Since the presidential election, the Russell 2000 index, which tracks small-cap stocks, is up around 4% as of Friday’s close.
Davi, whose firm has $1.9 billion in assets under management, also likes staying domestic despite the tariff risks.
“We’re overweight the U.S. I think that’s the right playbook in the next few years until the midterms,” added Davi. “We have two years of where he [Trump] can control a lot of the narrative.”
But Davi plans to stay away from fixed income due to challenges tied to the growing budget deficit.
“Be careful if you own bonds for sure,” said Davi.
Since the election, the benchmark 10-year Treasury yield is up 3% as of Friday’s close.
The No. 1 thing the ‘best’ places to retire have in common — and it’s not affordability
‘I opt to fly private — no matter what the cost’: The caviar in first class tastes like burnt plastic. What ever happened to airline standards?
Trump’s election win cleared up some market uncertainty — these big questions remain
Are American progressives making themselves sad?
U.S. Beneficial Ownership Information Registry Now Accepting Reports
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
-
Technology7 days agoAI Use Cases: Retail, Finance & Healthcare Solutions
-
Blog Post1 week agoThe Essential Practice of Bank and Credit Card Statement Reconciliation
-
Accounting2 days agoHow to Create an Effective Invoice Process for Small Businesses
-
Technology6 days agoThe Rise of Superapps: How AI is Powering the Next Generation of Mobile Apps
-
Economics1 week agoDid sexism propel Donald Trump to power?
-
Economics1 week agoPowell and the Fed won’t be able to avoid talking about Trump forever
-
Personal Finance1 week agoHere’s why ETFs often have lower fees than mutual funds
-
Personal Finance3 days agoOlder voters prioritized personal economic issues on Election Day: AARP