In July 2023, Warren Buffett's Berkshire Hathaway sold over $3 billion worth of Bank of America shares, capitalizing on the stock's recent rise.

Despite these sales, Berkshire remains the largest shareholder of Bank of America, holding a 12.4% stake valued at approximately $39.5 billion.

Since July 17, Berkshire has sold a total of 71.2 million shares, reducing its holdings by 6.9% to 961.5 million shares.

This marks the first reduction in Berkshire's Bank of America stake since 2019.

Bank of America's stock price initially surged following a strong earnings report but has since declined by about 5% from its peak.

Berkshire is obligated to report its sales until its stake in Bank of America falls below 10%.

Berkshire made a significant investment in Bank of America back in 2011, providing crucial support during the aftermath of the financial crisis.

Recent filings indicate that Berkshire sold approximately 18.41 million shares of Bank of America.

The latest transaction involved selling 18.9 million shares at an average price of $42.46, generating $802.5 million.

Overall, Berkshire has sold 52.8 million shares worth $2.3 billion, reducing its stake to about 12.5%.

Buffett has suggested that selling stocks may be prudent due to potential increases in the federal tax rate on capital gains.