Bank Shares Plunge to 46th in Liquidity as Berkshire Cuts Bank of America Stake to Fuel Rebalancing Gains

On August 4, 2025, Bank shares saw a trading volume of $1.42 billion, a 40.47% drop from the previous day, ranking 46th in market liquidity. American Bank (BAC) closed with a 0.42% gain, reflecting cautious investor sentiment amid shifting institutional positioning.

Recent developments suggest Warren Buffett’s Berkshire Hathaway has continued reducing its Bank of America stake during Q2. While the 10-Q filing did not disclose specific transactions, financial data indicate the company sold approximately $6.9 billion in stocks, including Bank of America shares. The strategic move aligns with a cost basis of around $7 per share, significantly below the stock’s $42 average price during the quarter. At the end of Q1, Berkshire held 631 million shares, representing an 8.5% stake, down from over 1 billion shares initially acquired via warrants a decade ago.

The sales generated a pre-tax gain of $5.3 billion, highlighting the potential for capital reallocation within Berkshire’s portfolio. This follows a trend of gradual divestment initiated in July 2024, with nearly 49 million shares sold in Q1 2025. Analysts interpret the activity as a rebalancing effort, though the full implications for Bank of America’s market performance remain subject to broader market dynamics.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets.