Buffett Trims 45% of BofA Stake, Redirects Capital to a Skyrocketing Virtual Platform

Billionaire investor Warren Buffett has reduced Berkshire Hathaway's position in Bank of America by roughly 45%, reallocating part of the proceeds into a dominant digital-platform company that has recorded an extraordinary gain since its IPO. The move, reported by financial outlets, signals a notable portfolio adjustment from one of the world's most watched value investors.

Berkshire’s partial sale of its Bank of America stake represents a meaningful rebalancing of a long-held bank holding. Buffett has historically praised the economics and management of Bank of America, but selling a sizable tranche suggests either profit-taking, capital redeployment to higher-growth opportunities, or an attempt to manage portfolio exposure to the financial sector.

The recipient of the redirected capital is described as a virtual monopoly — a company operating a platform or ecosystem with strong network effects and limited direct competition. According to the report, that stock has risen almost 13,000% since its IPO, reflecting massive investor enthusiasm and transformative growth in its market niche. Such a performance typically points to businesses that established new categories, captured scale quickly, or created defensible moats in digital services.

For long-term investors, the trade highlights the tension between steady, dividend-producing financial stocks and high-growth digital franchises. Buffett’s partial exit from Bank of America does not necessarily indicate a loss of conviction; rather, it could reflect active capital allocation toward what Berkshire’s managers view as exceptional upside potential or asymmetric risk-reward elsewhere.

Risks accompany such a pivot. Stocks with extreme historical gains often carry higher valuation risk and greater sensitivity to shifts in sentiment or regulatory scrutiny, particularly for platform companies that concentrate user data and market power. Conversely, exiting large bank stakes can reduce exposure to interest-rate cycles and cyclical credit risk.

Investors watching Berkshire’s filings and disclosures will look for further details on the sell-off timing, cost basis, and the exact size of new positions. Whether this is a one-off tactical adjustment or the start of a broader strategic tilt in Berkshire’s portfolio remains to be seen, but the trade underscores how even conservative, value-focused investors may allocate to dominant technology platforms when confronted with outsized historical returns and perceived long-term opportunity.