Warren Buffett sells all his holdings in Bank of America
After decades in which the "Oracle of Omaha" never ceased to surprise, recent reports reveal the dramatic moves made by Berkshire Hathaway just before Buffett handed over the reins to his successor, Greg Abel.
Here are the figures you need to know:
Buffett liquidated about 45% of his holding in Bank of America (over 460 million shares!)
This represents a return of about 600% (a profit of about $16 billion!) from the purchase price in 2011.
But why now?
From a 'bargain' of 68% below book value (P/B) in 2011, the stock is now trading at a 35% premium.
Buffett, as is known, does not like to overpay.
Bank of America is the most sensitive to interest rate changes.
As the Fed enters an interest rate cutting cycle, the bank's revenue is expected to be hit harder than its competitors.
Buffett may have retired as CEO at the end of 2025, but his lesson remains clear: don't marry a stock!
Know when the value no longer justifies the price.