While Warren Buffett hasn’t said why he sold Bank of America (BAC) stock, there are a number of reasons why he might have done so. He previously criticized U.S. bank managers for greedily lining their own pockets at the expense of their business and believes they can learn from their Japanese counterparts.
Buffett might have also sold down his stake for tax purposes. That is believed to be at least part of the reason he sold down his holdings in Apple. It could also be that with the Federal Reserve cutting interest rates, Bank of America will be hurt more than others during the current rate-easing cycle.
Whatever the reason, the money center will no longer be the stock that pays Buffett the most in dividends. That title now passes to…
This post originally appeared at 24/7 Wall St.