Warren Buffett sells stakes in two banks

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Warren Buffett, the renowned investor, decreased his investments in two banks during the last quarter while increasing his stake in Bank of America (BAC) and acquiring new shares in Capital One (COF).

Berkshire Hathaway (BRK-A) (BRK-B), Buffett’s investment conglomerate, sold $1.4 billion of its remaining holdings in custody bank Bank of New York Mellon (BK) and regional lender US Bancorp (USB), according to recent filings, Yahoo News reported.

This move represents a continuation of Buffett’s reduction of long-standing bank investments. Between 2020 and 2022, he sold a significant portion of Berkshire’s holdings in US banks, some just months before the banking system faced turbulence starting in mid-March.

Although Buffett has been known to come to the aid of troubled institutions in the past, such as during the 2008 financial crisis, he has not publicly disclosed any plans to act as a white knight for banks in the current crisis.

During Berkshire’s annual shareholders meeting earlier this month, Buffett expressed caution regarding bank stocks. However, he highlighted Bank of America as an exception, as it remains one of Berkshire’s largest holdings.

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