Investing Legend Warren Buffett Sold 45% of Berkshire Hathaway's Bank of America Stake and Bought Shares of This Consumer Favorite for 5 Consecutive Quarters Before Retiring

For decades, fewer investors captivated the attraction of nonrecreational and mundane investors rather similar Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) billionaire boss, Warren Buffett. During his astir six-decade tenure astatine the helm, the Oracle of Omaha oversaw a astir 6,100,000% cumulative instrumentality successful Berkshire's Class A shares (BRK.A). Practically doubling the annualized full return, including dividends, of the benchmark S&P 500 since the mid-1960s made him an instant deed with investors.

While Warren Buffett remains the president of Berkshire's board, helium officially stepped down from the CEO relation astatine the extremity of 2025 and handed the baton to his predetermined successor, Greg Abel.

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But conscionable due to the fact that he's nary longer overseeing his trillion-dollar company's day-to-day operations, it doesn't mean Buffett stopped making moves to presumption Berkshire Hathaway for occurrence earlier helium retired.

Thanks to Form 13F filings with the Securities and Exchange Commission, we cognize what Buffett was up to successful the quarters starring up to his retirement. A 13F is simply a required filing for organization investors with astatine slightest $100 cardinal successful assets nether absorption that details which stocks Wall Street's smartest and astir palmy wealth managers person been buying and selling.

One of the much eyebrow-raising moves starring up to Buffett's departure was his persistent selling of a halfway holding: Bank of America (NYSE: BAC). While Berkshire's outgoing brag was importantly reducing his company's involvement successful BofA, arsenic Bank of America is commonly known, helium was besides gathering a presumption successful a beloved user marque for 5 consecutive quarters (through Sept. 30, 2025).

For the amended portion of the past decade, Bank of America has been a top-three holding successful Berkshire Hathaway's concern portfolio. There's arguably nary assemblage Buffett understood amended oregon was much comfy putting his company's superior to enactment successful than financials.

The quality of slope stocks is that they're capable to instrumentality vantage of the earthy nonlinearity of economical cycles. Since periods of enlargement past notably longer than recessions, slope stocks similar BofA are capable to prudently turn their indebtedness portfolios implicit clip and thrive successful lockstep with the U.S. economy.

Berkshire's now-retired investing fable was apt besides a instrumentality of Bank of America's involvement complaint sensitivity. Compared to America's different money-center banks, nary is much delicate to involvement complaint shifts. When the Federal Reserve undertook an assertive rate-hiking rhythm to curb ostentation from March 2022 to July 2023, it resulted successful a sizable summation successful BofA's nett involvement income.