Warren Buffett Has Been Selling Bank of America Stock. Here's Why You Can Still Buy It.

Warren Buffett's company Berkshire Hathaway has built one of the largest and most successful stock portfolios in the world. It's now worth more than $300 billion. It's a great endorsement to be in Berkshire's portfolio. But it can also attract some unwanted attention if Buffett and Berkshire start to sell a stock.That's the position Bank of America (NYSE: BAC) has found itself in after the conglomerate unloaded more than $7.2 billion of the stock over the past two months. While Buffett and his team of investors at Berkshire are some of the best in the world, I think long-term investors can still buy Bank of America stock. Here's why.Truthfully, I don't know. And the public is unlikely ever to really know why Buffett and Berkshire are selling. But it's important to understand that people running a $300 billion stock portfolio and hedge fund portfolio managers have very different mindsets from retail investors. The "smart money" is beholden to shareholders, and a 5% move in the share price of a stock one way or the other can have much bigger consequences for them than it does for an individual investor.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool