Warren Buffett is Selling... Should You Buy?

The bank was struggling to digest its... [Energy and Capital Header] Practical Investment Analysis for the New Energy Economy Warren Buffett is Selling... Should You Buy? Jason Simpkins | Oct 17, 2024 Dear Reader, Thirteen years ago Bank of America (NYSE: BAC) was floundering beneath the mountain of debt it accrued during the financial crisis. The bank was struggling to digest its $4 billion acquisition of Countrywide Financial. And it was overwhelmed by liabilities and costs related to the 2008 subprime mortgage crisis that had tanked the global economy. That’s when Warren Buffett came riding to the rescue. The Oracle of Omaha put $5 billion into BofA exploiting a stock that had lost 90% of its value — falling from a peak of $54 per share in 2006 to less than $6 per share in a five-year span. Sitting here today, with BAC at $40 per share, it’s clear that the bet was another monumental win for Warren Buffett. So who would blame him for reaping his rewards? Over the past few months, Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK.B) — itself up about 500% since 2011 — has been quietly unwinding its stake in America’s second-largest bank. It sold almost $10 billion of BAC stock in the third quarter and another $140 million in the first two days of October, trimming its stake from 13% to 10%. What's next for bank stocks? [ Read the full article here...]( [Fb]( [Li]( [Tw]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Energy and Capital, Copyright © 3 East Read Street, Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. If you are interested in our other publications, please call our customer service team at [1-877-303-4529](tel:/18773034529).