Does Warren Buffett Know Something Wall Street Doesn't? The Billionaire Legend Dumps $9.6 Billion of Key Holding While Buying $345 Million of His Favorite Stock.

What is going on at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B)? In the last few months, the "Oracle of Omaha" has directed his firm to dump almost $10 billion of one of its largest holdings and a popular stock among institutional investors. The sales come as Berkshire sits on the largest pile of cash it's ever kept on the books. What does Warren Buffett know that Wall Street doesn't?Buffett has made a career of patient, disciplined investing, focusing on backing great companies for the long haul rather than picking great stocks. As he puts it, "When you find a truly wonderful business, stick with it. Patience pays." His philosophy has made him one of the wealthiest people on the planet. So, investors pay attention when he makes big moves, like offloading roughly a quarter of one of his largest holdings.The company in question, Bank of America, has been a key part of Berkshire's portfolio since Buffett helped prop up the bank in the wake of the financial crisis. He paid $5 billion for preferred stock and warrants to buy an additional 700 million shares at just over $7 per share before 2021.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool