Ramazan Eles 
After recently drawing attention with a major sale of Apple shares, Warren Buffett’s Berkshire Hathaway has made headlines again with another significant sale, this time involving one of its largest holdings, Bank of America. Buffett sold $982 million worth of shares, bringing the total value of BoA shares sold since mid-July to $5.4 billion.
Warren Buffett, the billionaire investor renowned for buying and holding shares of large companies for the long term, is once again in the spotlight for a major sale. This time, his firm, Berkshire Hathaway, sold nearly $1 billion worth of Bank of America shares, raising its cash reserves to an impressive $278 billion.
According to the company’s filing, 24.7 million BoA shares were sold between August 23 and 27. Despite these sales, Berkshire Hathaway, which began investing in Bank of America in 2011, remains the bank’s largest shareholder, still holding $35.8 billion worth of BoA stock.
Anticipating a Downturn?
Some analysts speculate that Buffett’s actions might indicate expectations of an impending financial downturn. However, a recent CNBC report suggested that Buffett believes the U.S. government may increase capital gains taxes to address budget deficits. This belief could be driving these sales, as they might be more beneficial for Berkshire Hathaway shareholders in the long run.
Yet, other experts argue that these sales are too significant to be purely motivated by tax considerations. As a result, there is still no clear understanding or consensus on the exact reasons behind Buffett’s decision.
Berkshire Hathaway had previously reported holding $277 billion in cash reserves by the end of the second quarter. With the latest BoA sale, that figure has now risen to $278 billion.
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