Warren Buffett sold shares of Bank of America Corp. For the 12th straight day, wiping away the lender’s lead on its benchmark index this year as his conglomerate trims the longtime investment.
His Berkshire Hathaway Inc. Has cut its stake in the bank by a total of 8.8% since mid-July, generating $3.8 billion in proceeds. Berkshire disclosed the latest round of disposals in a regulatory filing late Thursday, saying it reaped $779 million on July 30 through Aug. 1.
So far, Buffett has kept silent about his reasons and intentions while whittling the highly profitable bet — an investment that began when the stock was trading near $5 in 2011. The shares were on a tear in the months before the selling spree — up 31% this year — but the price has since fallen more than 10% to $39.50 through Thursday’s close, bringing it in line with the broader KBW Bank Index.
Bank of America shares fell as much as 4.3% in Friday’s trading.
Altogether, the string of disposals constitute Buffett’s biggest pullback from an investment that has long served as a stamp of approval on the leadership of Bank of America Chief Executive Officer Brian Moynihan, whom the 93-year-old investor has repeatedly praised in public.
Berkshire remains the bank’s biggest stockholder — with 942 million shares worth a total of $37.2 billion, based on Thursday’s closing price. That’s more than 12% of the Charlotte, North Carolina-based lender’s stock, according to data compiled by Bloomberg.
Representatives for Berkshire and Bank of America declined to comment.