The Zhitong Finance APP noted that Berkshire Hathaway (BRK.A.US)(BRK.B.US) may continue to reduce its holdings in Bank of America (BAC.US) in the second quarter, as its latest quarterly report revealed several clues.
As of June 30, 2025, Bank of America remains one of Berkshire's top five holdings. Berkshire began to reduce its position in Bank of America in July 2024.
The report shows that the group led by Buffett sold approximately $6.9 billion worth of stocks over a three-month period, realizing $5.3 billion in pre-tax profits, while purchasing approximately $4 billion worth of stocks.
Although the 13F filing did not disclose details of individual stock trades, if Berkshire reduces its approximately 631 million shares of Bank of America held as of March 31, 2025 (currently valued at about $26.5 billion), it would align with the reported data.
It is estimated that Berkshire's cost basis for its shares is about $7 per share, as its position of over 1 billion shares mainly comes from warrants acquired ten years ago at an exercise price of $7. Data shows that the average price of Bank of America stock in the second quarter was $42, which means that Berkshire's cost basis is only 17% of the market price, consistent with the reported profit ratio.
Year-to-date, Bank of America's stock price has underperformed the market by nearly two percentage points, ranking last among large banks. The Berkshire financial report released last Saturday disappointed investors, leading to a 2.9% drop in its stock price on Monday

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Berkshire Hathaway may continue to reduce its stake in Bank of America in the second quarter of 2024, with a reduction amounting to approximately $6.9 billion. Although Bank of America remains one of Berkshire's top five holdings, its cost basis is only $7 per share, significantly lower than the current market price of $42. Berkshire's financial report disappointed investors, causing its stock price to drop by 2.9%

- Berkshire Hathaway may have continued to reduce its stake in Bank of America during the second quarter, as indicated by its latest quarterly report.  
- As of June 30, 2025, Bank of America remains one of Berkshire's top five holdings, with the company selling approximately $6.9 billion in stock and realizing $5.3 billion in pre-tax gains.  
- Despite disappointing earnings results leading to a 2.9% drop in Berkshire's stock price, the report suggests that Berkshire's cost basis for Bank of America shares is significantly lower than the current market price.  

Buffett continues to "trim" bank stocks: Berkshire Hathaway Q2 likely further reduced its $6.9 billion position in Bank of America