OMAHA, Neb. – August 29, 2024 – Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) achieved a milestone on Wednesday, reaching a market capitalization exceeding $1 trillion for the first time. This achievement comes as Berkshire continues to reduce its holdings in Bank of America (BAC).
Berkshire becomes the first U.S. company outside the technology sector to reach the $1 trillion mark, joining an elite group that includes Apple, Microsoft, and Alphabet.
The news follows Berkshire’s disclosure on Tuesday of a further reduction in its stake in Bank of America.
The company sold 24.6 million shares, generating $982 million. This marks the fifth sale of BofA stock by Berkshire in the past six weeks, bringing the total sold to 129 million shares for $5.4 billion. Bank of America’s stock has declined by over 9% during this selling period.
Reports said that while the motivation behind the sales remains unclear, Berkshire maintains its position as Bank of America’s largest shareholder with over 900 million shares valued at more than $35 billion.
This long-standing relationship began in 2011 with a $5 billion investment by Berkshire to support the bank during the financial crisis.
Analysts say that Buffett’s past actions suggest a shift in strategy.
Previously, he exited significant investments in JPMorgan Chase, Wells Fargo, and Goldman Sachs between 2018 and 2022, just before banking industry turmoil began in March 2023. Notably, Wells Fargo’s departure from Berkshire’s portfolio followed a series of scandals.
Despite these changes, Berkshire remained committed to Bank of America.
As of June 2024, Bank of America was Berkshire’s third-largest holding, following Apple and American Express. With the recent sales, its position within the portfolio may shift further.
