Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway has continued its significant sell-off of Bank of America (BAC, Financial) shares, reducing its stake to 10.1%. Between October 3 and 7, the company sold 9.57 million shares, generating $3.83 billion in cash. Despite the reduction, Berkshire remains the bank's largest shareholder.
Since mid-July, Berkshire has been selling off Bank of America shares, cashing in approximately $10 billion. The selling spree highlights a strategic move, though Buffett has not disclosed the specific reasons behind these sales. Industry speculation suggests concerns over high U.S. stock valuations, potential economic recession, and declining long-term trends in America as possible motivations.
Another theory is an intensified regulatory crackdown on money laundering activities, including investigations related to fentanyl, which has implicated major U.S. banks.
Meanwhile, Berkshire's cash reserves have reached historic highs, further fueling speculation about Buffett's strategy. Back in 2008, Buffett encouraged investing in America, but his current actions indicate a shift, as the rapid selling of U.S. assets suggests caution amidst economic uncertainties.
