Bank of America has been slowing its peers since its lender star fourth quarter earnings report, leading some analysts to Berkshire Hathaway, the country’s second largest bank’s largest investor, is quiet once again I’m guessing that they’re loading stocks into the company. Since its latest quarterly report on January 16th, shares in Bank of America have been largely unchanged. This has not changed compared to the same span as the 2% profit on the S&P 500 and the 4% advance on the SPDR S&P Bank ETF (KBE). The decline in performance is even more notable as Bank of America posted results that surpassed expectations thanks to better investment banks and interest income. For the fourth quarter, earnings more than doubled from a year ago to $6.677 million, or 82 cents per share. Closed net interest income rose 3% to $14.5 billion, an estimated $170 million. BAC KBE 1M Mountain Bank of America believes that for the past month, two Wall Street analysts believe the performance decline was due to continued sales pressure from Warren Buffett’s conglomerates. “Is Warren in the room with us now?” John McDonald of Truist Securities asked his client in a note. “Some investors are questioning whether part of their performance after the fourth quarter results are sales pressure from Berkshire Hathaway,” he said. With a stake cut last year, Omaha-based Berkshire began selling, which was the second-largest stake behind Apple. Berkshire ultimately reduced its stock to less than 10%, and at that point it no longer requires timely reporting what is called “related transactions.” Steven Chubak of Wolfe Research said the recent pricing measures at Bofa “a strong indication” that Berkshire continues to cut its position. “It’s too early to make it clear, but investors feel that this technical overhang is more comfortable to handicap. I’m not too sure about the timing,” Chubak wrote in a memo. I said. When Berkshire releases its 13th Floor filing to the Securities and Exchange Commission on February 14th, investors will take a more clearer picture. The end of this month may reveal what the latest thinking by “Omaha Oracle” in the market in general, particularly in the US bank. Chubak estimated that Berkshire’s next 13F could potentially show a more refined position of around 7% at the end of 2024, and estimated that its holdings today would be close to 5.5% or 6%. Buffett is famous for purchasing $5 billion in Bank of America’s preferred stock and warrant in 2011 in the wake of the subprime mortgage crisis. He converted the warrant into common stock in 2017, making Berkshire the largest shareholder in the bank. Buffett then added 300 million shares to his investment in 2018 and 2019.
