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Billionaire Warren Buffett Sold 34% of Berkshire's Stake in Bank of America and Is Piling Into a Beloved Consumer Brand That's Soared 7,600% Since Its IPO

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Though Wall Street is home to more than a dozen prominent billionaire money managers, none captivates the attention of professional and everyday investors quite like Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett.

Investors flock to the "Oracle of Omaha" for two reasons. First, he's crushed the benchmark S&P 500 since becoming CEO of Berkshire Hathaway six decades ago. Whereas the S&P 500 has delivered an impressive 40,633% return, including dividends, since the mid-1960s, Buffett has overseen a cumulative return in his company's Class A shares (BRK.A) that tops 5,815,000%, as of the closing bell on Feb. 14.

Secondly, investors appreciate Buffett's candidness and open-book approach. Whether he's speaking to 40,000 people at Berkshire's annual meeting or writing his annual letter to shareholders, Berkshire's chief is willing to share the characteristics he looks for in wonderful companies.

But there are other ways to pick Warren Buffett's brain.

A jubilant Warren Buffett surrounded by people at Berkshire Hathaway's annual shareholder meeting.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.

No later than 45 days following the end to a quarter, institutional investors with at least $100 million in assets under management (AUM) are required to file Form 13F with the Securities and Exchange Commission (SEC). This filing, which was due on Feb. 14, provides a snapshot of which stocks Wall Street's brightest money managers bought and sold in the latest quarter. With Buffett overseeing nearly $299 billion in AUM at Berkshire Hathaway, his company's 13F allows investors an under-the-hood look at what he's been up to.

Based on the latest filing, billionaire Warren Buffett has been on a selling spree with Berkshire's No. 3 holding, and has now established a greater-than-$1.1 billion stake in a beloved consumer brand that's skyrocketed by 7,600%, including dividends, since its initial public offering (IPO).

Buffett has dumped more than 352 million shares of Bank of America

Although no Buffett stock was sold more aggressively in 2024 than Berkshire Hathaway's top holding, Apple, money-center giant Bank of America (NYSE: BAC) isn't too far behind. Between July 17 -- a specific date we know, thanks to Form 4 filings with the SEC -- and Dec. 31, Buffett oversaw the sale of 352,618,419 shares of BofA stock, which reduced his company's position by 34%.

During Berkshire's annual shareholder meeting in May, Buffett intimated that the peak marginal corporate income tax rate was likely to climb from 21%. Therefore, he believed that locking in sizable unrealized gains at an advantageously low rate would, in hindsight, be viewed as a wise move by Berkshire's shareholders. While Buffett was specifically alluding to share sales in Apple when making this point, it's possible the selling activity in Bank of America may be nothing more than tax-based.