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Buffett Dumps BofA Stock Again, May Be Trading Secretly Soon
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Buffett Dumps BofA Stock Again, May Be Trading Secretly Soon

(Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. may not have to announce his lightning-fast sales of Bank of America Corp. shares anytime soon. That is, if he keeps trimming the investment.

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A new round of sales announced Friday night reduced the conglomerate’s stake in the bank to 11.4%. As long as Berkshire owns more than 10%, U.S. rules require it to disclose transactions within a few days. But if the company owns less, it can wait weeks to notify the public — typically with snapshots after each quarter.

That would help calm the drama that has weighed on BofA’s stock price since mid-July, when Buffett — a longtime backer of CEO Brian Moynihan — launched an unprovoked selloff. Berkshire has since taken in a total of $6.2 billion.

In the sales announced Friday, Berkshire sold about 21 million shares for $848 million from Aug. 28 through Aug. 30.

Buffett, 94, began building up the investment in Bank of America with a $5 billion deal in 2011 for preferred stock and warrants. His Berkshire Hathaway eventually became — and remains — the bank’s largest shareholder, with a stake worth about $36 billion, based on Friday’s closing price.

–With assistance from Peter Eichenbaum.

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