Berkshire Hathaway (BRK.A/BRK.B), the holding company of famed investor Warren Buffett, has netted $10 billion U.S. from selling down its stake in Bank of America (BAC) stock.
A regulatory filing with the U.S. Securities and Exchange Commission (SEC) shows that Berkshire has made a windfall since it began reducing its stake in Bank of America this July.
Over the last three months, the Bank of America stake has been lowered to 10.1% from 13.1%.
Buffett first bought $5 billion U.S. worth of Bank of America stock in 2011. Until this summer, he had steadily increased his position in the stock and was the bank’s largest shareholder.
Berkshire Hathaway purchased the Bank of America stock at an average price of $14 U.S. a share and it is currently trading at $40.06 U.S. per share. That means Buffet has a gain of 185% on his holding.
Bank of America’s stock hit a 52-week high of $44.44 U.S. in July of this year after reporting second-quarter financial results, which was right before Berkshire started selling the stock.
Berkshire Hathaway now owns 784.55 million shares of Bank of America worth $31.46 billion U.S.
The more affordable Class B shares of Berkshire Hathaway have risen 25% so far this year and are currently trading at $453.80 U.S. per share.
