Buffett Dumps BofA Stock Again, and Soon He May Trade in Secret

(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. won’t have to swiftly disclose its rapid-fire sales of Bank of America Corp. stock too much longer. That is, if he keeps whittling the investment.

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A fresh round of disposals disclosed late Friday trimmed the conglomerate’s stake in the bank down to 11.4%. So long as Berkshire holds more than 10%, US rules require it to reveal transactions within a few days. But if the company holds less, it may wait weeks to update the public — typically giving snapshots after every quarter.

That would help quiet the drama weighing on BofA’s share price since mid-July, when Buffett — a longtime backer of Chief Executive Officer Brian Moynihan — embarked on a selling spree without giving a reason. Berkshire has since reaped a total of $6.2 billion.

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

Buffett, 94, began building 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 biggest stockholder, with a stake worth about $36 billion, based on Friday’s closing price.

--With assistance from Peter Eichenbaum.

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