Billionaire investor Warren Buffett has offloaded over 401 million shares of Bank of America since mid-July 2024, reducing his stake by approximately 39%. At the same time, he has significantly increased his investment in one of the few publicly traded legal monopolies in the U.S.
As 2023 comes to a close, Buffett is set to step down as CEO of Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B), passing leadership to Greg Abel. Over his 60-year tenure, Buffett, known as the “Oracle of Omaha,” has achieved an astonishing cumulative return of more than 5,884,000% on Berkshire’s Class A shares.
Despite being 94 years old, Buffett’s trading moves continue to capture the attention of investors, who often mirror his strategies for profit. Berkshire Hathaway’s quarterly Form 13F filings with the SEC provide insight into Buffett’s buying and selling activities.
Recent disclosures reveal that Buffett has been a consistent seller of Bank of America stock for three quarters. However, he is aggressively investing in a historically undervalued company that operates as a legal monopoly on Wall Street.
Buffett’s recent selling of Bank of America shares began on July 17, 2024. By March 31, 2025, he had divested over 401 million shares, reflecting a significant reduction in Berkshire’s holdings.
Some speculate this selling is simply profit-taking. At Berkshire’s 2024 annual meeting, Buffett indicated that corporate tax rates might rise in the future, hinting that investors could appreciate the gains locked in at current rates.
However, there may be deeper reasons behind Buffett’s decision to sell. Bank of America, being sensitive to interest rates, saw its income soar when the Federal Reserve raised rates to combat inflation. But as the Fed shifts to a rate-easing cycle, there are concerns that Bank of America’s interest income could decline faster than that of other banks, potentially influencing Buffett’s strategy.
Another factor in Buffett’s decision could be Bank of America’s valuation. When Buffett first invested in the bank’s preferred stock in 2011, its common stock was trading at a 62% discount to its book value. Now, it trades at a 29% premium, which, while not excessive, is above its historical average.
On the flip side, Buffett has found attractive opportunities in the market, particularly with Sirius XM Holdings. Despite being a net seller of stocks for 10 consecutive quarters, Buffett has been actively buying shares of Sirius XM since its merger last September.
Between September 30, 2024, and March 31, 2025, he acquired over 14.6 million additional shares, raising Berkshire’s total stake to nearly 120 million shares—more than 35% of Sirius XM’s outstanding shares.
Sirius XM operates as a legal monopoly in satellite radio, giving it unique pricing power in a competitive landscape. Unlike traditional radio, which relies heavily on advertising, Sirius XM generates the bulk of its revenue from subscriptions, providing more stable cash flow during economic downturns.
Moreover, Sirius XM’s cost structure is relatively predictable, allowing for potential margin expansion as its subscriber base grows. Currently, Sirius XM shares offer Buffett a rare opportunity in today’s market, priced at less than eight times forecast earnings for 2025 and 2026—a 60% discount compared to its average earnings multiple over the past five years.
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