Berkshire Hathaway's Bank of America Position May Not Be Sold Off After All
Following Warren Buffett’s retirement as CEO of Berkshire Hathaway in December 2025, his successor Greg Abel has taken control and begun reshaping the company’s $363 billion investment portfolio. One notable move was a significant reduction in Bank of America (BAC) shares — over 549 million sold since July 2024, representing nearly half of Berkshire's stake. This led to speculation that BofA would be fully divested. However, recent developments suggest Abel may reconsider this course. The stock is now trading at a more attractive valuation—just a 30% premium to book value after rising profitability and prudent lending practices have boosted the bank’s fundamentals. Additionally, with the Federal Reserve entering its fourth rate-hiking cycle of the century in September 2026, Bank of America's net interest income could benefit as it is among the most sensitive large U.S. banks to changes in rates. These factors are shifting perceptions around BofA and may lead Abel to retain or even increase Berkshire’s position rather than fully divest.
Topics: Bank of America Berkshire Hathaway Greg Abel Stock Sales Warren Buffett