Bank of America(BAC) The Motley Fool·2025-02-17 09:51Core Insights - Warren Buffett has sold over 352 million shares of Bank of America since mid-2024, reallocating funds into a 1.1 billion investment in a consumer brand [1][5][6] - Buffett's investment strategy continues to outperform the S&P 500, with Berkshire Hathaway's Class A shares achieving a cumulative return of over 5,815,000% since the mid-1960s [2][4] - The recent Form 13F filing reveals Buffett's selling spree, particularly in Bank of America, which has seen a 34% reduction in shares held [4][7] Bank of America - Buffett's sale of Bank of America shares is significant, with 352,618,419 shares sold between July 17 and December 31, 2024 [7] - The decision to sell may be influenced by potential increases in corporate income tax rates and the desire to lock in gains at lower tax rates [8] - Concerns about Bank of America's interest rate sensitivity and valuation have arisen, as the stock is now valued at a 31% premium to book value, compared to a 62% discount when Buffett first invested [10][11] Domino's Pizza - Buffett has shifted focus to investing in Domino's Pizza, acquiring 2,382,000 shares worth over 1.1 billion by the end of 2024 [13][14] - Domino's has built consumer trust through transparent marketing and strong management, which aligns with Buffett's investment philosophy [15] - The company's innovative growth strategy and international expansion have contributed to consistent sales growth, with expectations for 31 consecutive years of international same-store sales growth [16][17] - Domino's has a robust capital-return program, increasing its annual payout and regularly repurchasing shares, which is attractive to value-focused investors [18] - Despite being valued at 27 times consensus EPS for 2025, Domino's brand strength and consumer insights make it a compelling investment for Buffett [19]