As recession fears over the US economy intensify, Berkshire Hathaway’s selldown of its investment in Bank of America could be interpreted as waning confidence in the outlook for America’s second-biggest bank — and by extension the wider banking sector.
Since mid-July, Warren Buffett’s Berkshire has sold almost $7bn of BofA stock in a series of sales, according to Securities and Exchange Commission filings. That cuts the conglomerate’s stake in the megabank from 13.1 per cent to 11.1 per cent.
Recent sales were enough to spook investors. BofA shares have fallen 13 per cent to about $38.50 since July 17, the day Berkshire started selling the stock.