Just one step away from the regulatory threshold! Buffett once again reduced his holdings in Bank of America Corp (BAC.US) to a stake of 10.5%.

"The stock god" Buffett's Berkshire Hathaway (BRK.A.US) has sold $863 million worth of Bank of America Corp (BAC.US) shares, reducing its stake to closer to the 10% regulatory threshold. According to documents submitted to the U.S. Securities and Exchange Commission (SEC) on September 24th local time by Berkshire Hathaway, the company further reduced its holding of Bank of America Corp shares over three trading days leading up to Tuesday, now holding 10.5% of the shares of this second largest bank in the U.S. According to regulations, if the holding exceeds 10%, the transaction must be disclosed within a few days; if the holding is less than 10%, there is no need to disclose the transaction immediately, and it may typically take a few weeks to disclose in quarterly reports. 94-year-old Buffett began selling Bank of America Corp shares in mid-July. Data shows that Berkshire Hathaway sold approximately $3.825 billion worth of Bank of America Corp shares in total in July. The company continued to sell Bank of America Corp shares in August, selling around $550 million from August 15 to August 19, around $981.9 million from August 23 to August 27, and around $848 million from August 28 to August 30. After entering September, Berkshire Hathaway's selling of Bank of America Corp shares continues. However, even after months of selling, Berkshire Hathaway's remaining shares in Bank of America Corp are still valued at $32.1 billion as of Tuesday's closing price, maintaining the position of the largest shareholder. It is worth noting that information disclosed last week shows that Berkshire Hathaway sold $896 million worth of Bank of America Corp shares from September 17th to September 19th. This means that, disregarding the impact of taxes, Buffett's total profits from selling Bank of America Corp shares since mid-July, plus the dividends received since 2011, have exceeded the $14.6 billion spent on purchasing Bank of America Corp shares. In 2011, Buffett invested $5 billion in Bank of America Corp's preferred shares and warrants, establishing a position in the company. Six years later, after the bank raised its dividends, he converted these shares into common stock. During his investment period, Bank of America Corp's stock price doubled. Over the years, Buffett has been increasing his stake in Bank of America Corp and praising the bank's leadership, showing confidence in its long-term prospects and business strategy. Buffett and Berkshire Hathaway have remained silent on the reasons and intentions behind the reduction in their holding of Bank of America Corp. There are speculations from external sources, such as Bank of America Corp being overvalued, Buffett possibly preparing for a shift in Fed monetary policy, and others. Market analysts suggest that the Fed's upcoming interest rate cut cycle may be one of the reasons for Buffett's reduction of his holding in Bank of America Corp. They point out that the profitability of the banking industry largely depends on net interest margin, the difference between bank loan rates and deposit rates; when the Fed initiates an interest rate cut cycle, the challenge of declining yields for banking assets could lead to a decrease in net interest margin, affecting the profitability of Bank of America Corp. Bank of America Corp has previously stated in financial reports that if the Fed cuts interest rates three times before the end of the year, it could have a $225 million impact on its net interest income.