Buffett has recently made a big move on Bank of America shares, cashing out more than 6.3 billion yuan in just a few days! Berkshire Hathaway reduced its holdings three times from September 17 to 19, selling more than 22 million shares in total. Together with previous actions, the total cash out in two months reached nearly 6.2 billion US dollars. The old man's capital flow is as smooth as an ATM.
Since July, Buffett has frequently sold Bank of America shares, and seems to have reservations about the future of bank stocks. Looking back to 2011, he invested heavily in Bank of America with $5 billion, but now he chooses to gradually withdraw. The reason behind this is speculative: Is it caution under high inflation? Or is it concern about the overvaluation of banks? Or is it a consideration of bank operations and regulatory risks?
However, analysts see opportunities in this, believing that after the Fed cuts interest rates, the low-interest bonds held by Bank of America may appreciate, which may increase net interest income next year. Buffett's move may be to leave the market with a buying opportunity. The stock market is unpredictable, and every step Buffett takes affects the market. One cannot help but admire his keen market sense and unique investment strategy!
