Warren Buffett Is Selling Bank of America and Citigroup Stock and Is Piling Into This High-Yield Investment Instead
Buffett bought more than $166 billion of this investment in 2024.
In his February letter to shareholders, Warren Buffett announced a new record Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) set in 2024: It paid more in taxes than any company ever paid the U.S. government in a single year. And that's despite significantly lower tax rates in recent years than throughout the history of Berkshire Hathaway.
Of course, paying a big tax bill means you earned a lot of money for your investors. For Berkshire Hathaway, though, much of those earnings came in the form of capital gains on the sale of publicly traded equities. In total, Buffett and his fellow portfolio managers sold $143 billion worth of stock from Berkshire's portfolio. That resulted in $101.1 billion in taxable gains, dwarfing any amount the company realized in the past as well as its normal operating income.
The fourth quarter saw Buffett sell off significant chunks of his stakes in financial stocks including Bank of America and Citigroup. At the same time, he's piled any cash leftover after Berkshire's massive tax bill into one high-yield investment.
