Warren Buffett Realizes Billion-Dollar Profit from Bank of America Sale

Berkshire Hathaway recently achieved a remarkable profit of $10 billion from the sale of Bank of America shares, as revealed in recent SEC filings. Over the past three months, Warren Buffett reduced his stake in the financial institution from 13.1% to 10.1%. Buffett's involvement with Bank of America began in 2011, amid the recovery phase following the 2008-09 financial crisis, when he invested $5 billion. The original purchase price of the shares was $14, and these have since risen to an impressive $40, representing a gain of 185%. The sale occurred shortly after a peak in the stock in July, when it rose to $44.4 following a positive second-quarter financial report. Buffett has not yet publicly commented on the reasons for the decision to sell, leaving room for speculation. Experts debate possible reasons such as concerns about the future performance of the bank, mitigating potential market downturns, or simply the intention to secure profits from a successful investment. Despite the partial sale, Bank of America remains a significant component of Berkshire Hathaway's portfolio, with a total of 784.55 million shares held, valued at approximately $31.46 billion. This strategic action reflects Buffett's prudent approach to investment management, and the markets eagerly await his next moves.