Warren Buffett's Berkshire Hathaway slashed its Bank of America stake and dumped bank stocks last quarter

Core Insights - Warren Buffett's Berkshire Hathaway reduced its investments significantly in the last quarter, indicating challenges in finding attractive investment opportunities in a strong market [1][6][9] Investment Adjustments - Berkshire Hathaway cut its stake in Bank of America to 680 million shares, down from over 1 billion, resulting in a decrease in ownership percentage from over 13% to below 9% and a decline in value from approximately $41 billion to under $30 billion [2][3] - The company also sold 74% of its Citigroup stake, 18% of its Capital One holding, and 54% of its Nu Holdings position, along with trimming positions in Charter Communications, Louisiana-Pacific, and T-Mobile US [3][4] Exits and New Investments - Berkshire exited its position in Ulta Beauty, which was established only in the second quarter of the previous year, and sold its holdings in SPDR S&P 500 ETF Trust and Vanguard S&P 500 ETF [4] - The company established a new $1.2 billion stake in Constellation Brands, the producer of Corona and Modelo beer, while increasing its investment in Domino's Pizza by 86% and Pool Corp. by 48% [4][5] Portfolio Value and Cash Position - Despite the reductions, the total value of Berkshire's US stock portfolio increased to $267 billion due to gains in several positions [6] - The company sold $133 billion of stocks in the first nine months of 2024 while acquiring less than $6 billion, and spent less than $3 billion on share buybacks, leading to a cash pile exceeding $300 billion for the first time [6][7] Market Conditions - Buffett has noted that high company valuations have made it difficult to find compelling investment opportunities, leading to a preference for holding cash and Treasurys due to higher interest rates [8]