Post #8884 by mungofitch on the Berkshire Hathaway board

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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Could this have been a consideration in Buffett’s sale of BAC?

Maybe, but I suspect not. Interest rates margins are classically cyclical, and I personally find it hard to believe that Mr Buffett would cut the BAC stake on any purely cyclical issue. Farms have winters, banks have recessions. I think he would be reacting only to things which are more major: bad lending (beyond the normal top-of-cycle amount), or some other material risk on the balance sheet, or bad management, or many years of poor performance foreseen for some reason (like running off a boat load of low yield bonds?), something like that.

Jim

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