Buffett's Portfolio Shift: Dumping Bank of America While Quietly Loading Up on Pool Corp

Warren Buffett’s latest 13F filings just dropped, and the moves are pretty telling. Over the last year, Berkshire Hathaway sold off 427.5 million shares of Bank of America—that’s 41% of their stake. Meanwhile, this pool supplies company (Pool Corp) has been getting consistent buys for four straight quarters, with Q2 alone adding nearly 2 million shares.

What’s going on here? Buffett’s not just taking profits. Bank of America’s valuation has flipped from a 68% discount to book value (back in 2011) to a 39% premium today. Rate cuts are also hitting BofA harder than other banks since it’s most sensitive to interest rate changes. With the Fed cutting rates, the math doesn’t work anymore.

Pool Corp though? Different story. It’s a cyclical play with recurring revenue (once you install a pool, you need maintenance forever), predictable cash flows, and now a growing software platform for pool technicians. Stock’s up 42,400% since its 1995 IPO.

The Oracle is still net-selling stocks overall ($177.4B out over 11 quarters), but Pool keeps getting added to. That’s not random. He sees a durable competitive advantage with decent upside—even as Trump’s tariffs create near-term headwinds for cyclical plays.

Takeaway: When Buffett exits a financial stock this aggressively while accumulating an industrial one, it’s worth paying attention to the why behind the moves, not just the trades themselves.