Core Insights - Warren Buffett has sold over 427 million shares of Bank of America since mid-July 2024, indicating a significant reduction in his stake in the company [1][7] - The quarterly filing of Form 13F provides insights into the trading activities of institutional investors, allowing the market to gauge the actions of prominent money managers like Buffett [2][3] - Buffett's selling of Bank of America stock may reflect concerns about the company's future net interest income amid changing interest rate environments [9][10] Bank of America - Buffett has sold 427,584,631 shares of Bank of America, representing a 41% reduction in his holdings since July 17, 2024 [7] - The selling activity is interpreted as a strategy to lock in gains at a favorable tax rate, especially given the current low corporate income tax rates [8] - Bank of America is particularly sensitive to interest rate changes, and the ongoing rate-easing cycle may negatively impact its net interest income compared to peers [10] - The stock is currently trading at a 28% premium to its book value, contrasting with its previous valuation at a 68% discount when Buffett first invested [11] Domino's Pizza - Buffett has increased his stake in Domino's Pizza for four consecutive quarters, reflecting confidence in the brand's long-term growth potential [13][14] - Domino's has returned over 7,200% since its IPO, showcasing its strong market performance [14] - The company has built consumer trust through transparency and effective marketing strategies, which have positively influenced its brand perception [16] - Domino's is leveraging artificial intelligence to enhance its supply chain and has a robust capital-return program, including regular stock buybacks [17][18] - The stock is currently valued at a forward P/E of just over 23, which is a 16% discount to its average forward P/E ratio since 2020, making it an attractive investment opportunity in a pricey market [19]