Warren Buffett Sells 41% of Berkshire's Stake in Bank of America, Adds to Consumer Brand Soaring 7,200% Since IPO

Warren Buffett sold 41% of Berkshire's stake in Bank of America and bought into a consumer brand that has soared 7,200% since its IPO. Buffett has been selling stocks on a net basis for almost three years, with Bank of America being one of the largest contributors to this trend. He has overseen the sale of 427,584,631 shares of BofA stock since July 2024. Buffett's continued selling activity is attributed to locking in gains at a tax-advantaged rate.

Warren Buffett's Berkshire Hathaway has continued its trend of selling Bank of America (BAC) stock while increasing its stake in a consumer favorite, Domino's Pizza (DPZ). According to the latest Form 13F filing with the Securities and Exchange Commission (SEC), Buffett sold 26.3 million shares of Bank of America in the second quarter of 2025, reducing its stake by 41% [1].

This selling activity is part of a broader trend where Buffett has been selling more stocks than he buys on a net basis for almost three years. Since mid-July 2024, Buffett has overseen the sale of 427,584,631 shares of Bank of America, resulting in a 41% aggregate reduction in Berkshire's stake [1].

The simplest explanation for this continued selling activity is that Berkshire's billionaire chief is locking in gains at a tax-advantaged rate. Buffett has previously mentioned that selling shares of Apple, his company's top holding, made sense given the low peak marginal corporate income tax rate [1].

However, there is also concern that Buffett's selling activity in Bank of America may signal concern about a potential decline in the company's net interest income in future quarters. Bank of America is particularly sensitive to changes in interest rates, and with the Federal Reserve in a drawn-out rate-easing cycle, the company's net interest income may take a bigger hit than its peers [1].

On the other hand, Berkshire's boss added to shares of Domino's Pizza for a fourth consecutive quarter. The fast-food restaurant chain has soared more than 7,200% since its initial public offering (IPO) 21 years ago. Though only 13,255 shares of Domino's were added during the second quarter, it increased Berkshire's stake in the company to 7.8% [1].

Domino's Pizza's consumer trust, consistent growth initiatives, and capital-return program are some of the reasons why Buffett continues to buy into the company. Additionally, the stock is valued at a discount to its average forward price-to-earnings (P/E) ratio over the trailing half-decade [1].

References:
[1] https://www.fool.com/investing/2025/08/18/billionaire-warren-buffett-sold-41-berkshire-bofa/