Warren Buffett Sells Off $3.8 Billion in Bank of America Shares Over 12 Days, Leaving Investors Puzzled

"Billionaire investor Warren Buffett has continuously sold shares of Bank of America Corp (BAC.US) for the 12th consecutive day, reducing his position by 8.8% since mid-July and cashing out a total of $3.8 billion.

According to a regulatory filing submitted late Thursday, Berkshire Hathaway (BRK.A.US) disposed of $779 million worth of Bank of America shares between July 30 and August 1. Despite these sales, the firm still holds over 942 million shares of the bank, valued at $37.2 billion based on the closing price that day.

To date, Buffett has remained silent on the reasons and intentions behind this substantial reduction in his stake. This high-profit bet began in 2011 when Bank of America's stock was trading around $5. In the months preceding the significant sell-off, the bank's stock had been on the rise, increasing 31% this year. However, its price has since fallen over 10% to $39.50, roughly aligning with the broader KBW bank index.

Overall, this series of asset disposals marks the largest withdrawal Buffett has made from this investment. For many years, this investment has been seen as an endorsement of Bank of America's CEO Brian Moynihan's leadership, with Buffett often publicly praising Moynihan.

A representative for Berkshire Hathaway couldn't be immediately reached for comment after regular business hours. A spokesperson for Bank of America declined to comment.

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