Warren Buffett's Strategy Shift: Berkshire Hathaway Parts Ways with Bank of America

Investors were recently astonished by the recent sales of Bank of America shares by investment legend Warren Buffett. Since the beginning of 2024, more than 266 million shares of the bank have been sold, amounting to a sales value of 10.52 billion dollars. This transaction reduced Berkshire's stake in the bank by about 26 percent. These sales are part of a remarkable trend in which Berkshire Hathaway sold significantly more shares, valued at 166 billion dollars, over the past eight quarters than they acquired. This selective selling strategy stands out from Buffett's traditional approach of investing in companies for the long term. Nonetheless, Buffett suggests that these activities may represent a tactical decision in view of rising corporate taxes. During this year's Berkshire annual meeting, he expressed the expectation that corporate taxes could rise in the future. Therefore, the current sale of significant gains could indeed secure long-term tax savings for the company. Meanwhile, Buffett and his team continue to enjoy a reputation as masters of the financial world, whose strategic decisions are observed by investors worldwide. Thanks to public disclosures like SEC forms, investors can closely follow Berkshire's investment decisions and benefit from Buffett's experience.