Berkshire Hathaway holds 8% of its stock portfolio in Bank of America, its fourth-largest holding, despite recent sales of other major positions.
Berkshire Hathaway has maintained its stake in Bank of America, which represents 8% of its stock portfolio and ranks as its fourth-largest holding. The decision comes amid a broader rebalancing that saw the conglomerate exit 16 positions, including Visa, Mastercard, and Amazon, in the first quarter under new CEO Greg Abel.
Bank of America, purchased in 2011, remains a long-term holding despite valuation differences with fintech-leaning peers. Visa and Mastercard trade at over 25 times forward earnings, while Bank of America trades at 11.6 times, reflecting Berkshire’s preference for traditional banks in the current environment.
The move signals confidence in Bank of America’s valuation and long-term prospects, contrasting with the sale of higher-multiple fintech stocks.