2 weeks Ago By Bloomberg
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. won’t have to swiftly disclose its rapid-fire sales of Bank of America Corp. stock too much longer.
That is, if he keeps whittling the investment. Most Read from Bloomberg A fresh round of disposals disclosed late Friday trimmed the conglomerate’s stake in the bank down to 11.4%.
So long as Berkshire holds more than 10%, US rules require it to reveal transactions within a few days. But if the company holds less, it may wait weeks to update the public — typically giving snapshots after every quarter. That would help quiet the drama weighing on BofA’s share price since mid-July, when Buffett — a longtime backer of Chief Executive Officer Brian Moynihan — embarked on a selling spree without giving a reason.
Berkshire has since reaped a total of $6.2 billion. In the disposals announced Friday, Berkshire sold about 21 million shares for $848 million from Aug.
28 through 30. Buffett, 94, began building the investment in Bank of America with a $5 billion deal in 2011 for preferred stock and warrants. His Berkshire Hathaway eventually became — and remains — the bank’s biggest stockholder, with a stake worth about $36 billion, based on Friday’s closing price.
--With assistance from Peter Eichenbaum. Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
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