Subject: Re: He sold more BAC
No...if Berkshire is selling something now, it's because Mr B thinks it's a good idea to sell it, for whatever reason.

I think this is true. However, I wouldn't be at all surprised if Buffett is transitioning to shared decision-making between now and the full handover (and there is a distinct possibility that he might decide to do the full handover before his death, though it isn't likely unless there is some sort of debilitating disease involved). Maybe the shared decision-making means that "big" changes only happen if they both agree.

I would therefore speculate further than think he smells a risk in the air, but of what type I can't imagine.

The one thing I can think of is the resolution of bad bank debt. It won't be huge, but it'll still be substantial. All those CRE deals that we see having to eat a few hundred million add up over time. Over the next 5 years, it could amount to a few hundred billion, maybe $500B or so. Maybe Buffett believes that this time around, the fed won't issue $500B extra bonds to fund it, maybe instead he thinks that because the banks are so well capitalized right now, that the government will force the big banks to merge the smaller regional banks with their bad loans into themselves and eat the losses using their excess capital (instead of allowing the excess capital to accrue to the shareholders).

Citi is a MUCH smaller part of the Berkshire portfolio, but with this thesis, they might discard that one as well at some point.