Remember the classic Groundhog Day where Bill Murray relives the same day over and over again? Well, welcome to Wall Street’s Nebraska’s version, starring none other than Warren Buffett. 

It seems like every time we turn around, the "Oracle of Omaha" is selling more Bank of America stock, and at this point, it feels like he’s more committed to selling shares than getting his usual McDonald’s breakfast. Since July 17th, Buffett has offloaded a $6.97 billion worth of Bank of America shares, with $760 million sold just this week. Yet, despite all the selling, Berkshire Hathaway still holds a hefty 11% stake, valued at $34.7 billion.

So, what's going on? Why does it feel like Buffett is stuck in his own financial version of Groundhog Day, selling shares but never quite leaving the stage? And when, for the love of all that’s holy, is this going to end?

Buffett’s love affair with Bank of America started back in 2011, when he swooped in with a $5 billion deal for preferred stock and warrants. It was a classic Buffett move—swooping in when the bank was struggling, picking up a sweet deal, and making Bank of America his loyal sidekick. In 2017, he converted those warrants into 700 million common shares at just $7 a pop. Talk about a steal.

But now, it seems like the romance is fading. Since mid-July, Berkshire has liquidated 15% of its Bank of America stake. The burning question on everyone’s mind: why is Buffett bailing out on BofA? Some say he’s just trimming some fat; others whisper about darker motives, like a recession or market downturn. But let’s not panic just yet.

Sure, Buffett loves to tell us billionaires should pay higher taxes, but behind the scenes? This dude dodges taxes like Neo dodges bullets in The Matrix. Seriously, the man avoids them like the plague. 

The initial 700 million shares were scooped up for dirt cheap, meaning if he sells those, Uncle Sam takes a bigger bite out of the profits. On the flip side, the other 300 million shares he bought later, at around $30 a pop, come with a lighter tax bill. So, he’s probably unloading those higher-cost shares first, and it makes sense. You don’t get to be Warren Buffett by paying more taxes than you have to.

Some folks think he’ll stop once he gets his stake down to 700 million shares, that magical round number. Why 700 million? It’s clean, it’s neat, and let’s face it, like Adrian Monk, Buffett seems to have a thing for round numbers (just look at how he’s handled Apple and Coca-Cola shares).

Okay, but why sell at all? Bank of America is one of the cheaper stocks out there, trading at about 14 times earnings. Compare that to the S&P 500, which is sitting pretty at 24 times earnings, and you’ve got to wonder: is Buffett just cleaning house, or is there something more ominous brewing?

After going on CNBC and calling bank stocks one of his favorite holdings in the entire stock market back in 2020… Warren’s been slowly distancing himself from the banking sector ever since. Remember Wells Fargo? Gone. JPMorgan Chase? See ya. U.S. Bancorp? Out the door. He’s been peeling back his financial holdings like layers of an onion. So maybe this is just another layer. Or maybe, just maybe, he’s seeing something the rest of us aren’t. 

Plus, let’s not forget how Buffett’s been vocal about banks screwing up their securities portfolios. You know, that little thing where banks bought long-term Treasuries in a rising rate environment and then watched their portfolios implode? Yeah, not great. Buffett’s probably shaking his head at how some of these banks have handled their business, and who could blame him?

The million-dollar (or $6.97 billion) question: when will Buffett stop? Your guess is as good as mine. But if history is any guide, once he starts selling, he often doesn’t stop until the cupboard’s bare. He’s known for trimming down until he’s out of the game entirely—like when he ditched his stakes in other big banks. So, if you’re a Bank of America shareholder, you might want to keep an eye on those SEC filings.

Until then, it’s just another day in Groundhog Day, and we’re all stuck watching Buffett hit repeat.

But, but, but...

While Warren Buffett is busy playing Groundhog Day with Bank of America—selling shares like he's clearing out his garage—our Stocks.News alert on Wednesday hit a massive +162.08% gain in less than 24 hours after we published it. And get this, not only did our premium members cash in on those juicy gains, but it also marks our fifth triple-digit winner in a row. Talk about a winning streak!

So, why spend your days stressing over Buffett’s never-ending stock shuffle when Stocks.News premium members are out here grabbing explosive market opportunities every single week?

You can do the math, but if you're catching the drift, upgrade to Stocks.News premium before the next alert drops—it’s set to be another banger, no doubt.

Until next time, stay sharp and stay frosty, friends!

Stock.News has positions in Apple, McDonald’s, and Coca-Cola.