Just been diving into Berkshire's latest 13F filings and there's something pretty interesting happening that most people are glossing over. Buffett's been aggressively trimming his Bank of America position—we're talking 427 million shares sold in just four quarters, which represents about 41% of what Berkshire held. That's a massive shift from a position that used to be his second-largest holding.

Now, everyone's quick to assume it's just profit-taking. And yeah, there's probably some of that happening. But if you dig deeper, the real story gets more nuanced. Bank of America is the most rate-sensitive among the big money-center banks, right? When the Fed was hiking aggressively back in 2022-2023, BofA absolutely crushed it on net interest income. But now we're in a rate-cutting cycle, and that advantage flips. Buffett clearly sees the headwinds coming.

There's also the valuation angle. When Buffett made his original BofA investment back in 2011, those shares were trading at a 68% discount to book value. Fast forward to now, and the stock's at a 39% premium. That's no longer the bargain that caught his eye, and Buffett's always been obsessed with valuation discipline.

But here's what's really caught my attention—while he's been a net seller of stocks for 11 straight quarters, dumping $177 billion overall, there's one position he literally can't stop buying: Pool Corp. Four consecutive quarters of accumulation. Started with 404k shares in Q3 2024, then ramped up to nearly 2 million in Q2 2025. That's 3.5 million shares total now.

Pool's a fascinating play if you think about the thesis. It's a cyclical business, sure, but it's got something most cyclicals don't—recurring revenue. Once someone installs a pool, they need maintenance supplies forever. The company's also evolved beyond just being a distributor. Their Pool360 platform is basically a software play for pool technicians, handling scheduling, billing, all that stuff. That's how you expand margins in a mature market.

The returns speak for themselves. Since the IPO in October 1995, Pool stock is up over 42,400% including dividends. That's the kind of compounding that actually gets Buffett's attention. Even with Trump's tariff uncertainty potentially weighing on cyclicals short-term, Berkshire's boss clearly sees the competitive moat and the staying power.

What's wild is how this contrasts with his banking moves. He's essentially rotating from a position that's become expensive and rate-vulnerable into a business with durable competitive advantages and predictable cash flows. It's classic Buffett—recognizing when a good investment becomes a mediocre one and pivoting toward something with better fundamentals. The banking relationship that once defined part of his portfolio is being rebalanced, and where he's putting that capital tells you everything about where he sees value right now.