Greg Abel May Sell Bank of America Stake as Berkshire Hathaway Portfolio Strategy Evolves
With Warren Buffett retiring from his role at Berkshire Hathaway on Dec. 31, Greg Abel has taken over management of the company's $364 billion investment portfolio and is already making changes to its holdings. One notable shift may involve Bank of America (BAC), one of Berkshire’s largest investments. Buffett initially invested in BofA after the financial crisis, securing a profitable deal that included preferred stock with dividends and warrants for future share purchases. Since 2024, both Buffett and Abel have aggressively sold nearly half of their stake in Bank of America—approximately 549.5 million shares. This selling pressure is attributed to BofA's valuation, which has moved from a significant discount to book value at the time of purchase to now trading at a premium. Additionally, recent Federal Reserve rate cuts have negatively impacted BofA’s interest income compared to other banks. Buffett and Abel appear focused on core holdings that align with long-term investment strategies. Buffett listed eight stocks as
Tickers: $BAC
Topics: Bank of America Berkshire Hathaway Greg Abel Investment Strategy Warren Buffett