Just caught something interesting in Berkshire Hathaway's latest 13F filings. Over the past four quarters, Warren Buffett has been quietly dumping Bank of America stock at a pretty aggressive pace. We're talking about 427 million shares sold, which represents 41% of what Berkshire was holding. That's a massive reduction from what was once their second-largest position.

Now, the obvious take is that Buffett's just locking in gains before tax rates potentially rise. Fair enough. But there's probably more to the story here. Bank of America is notoriously sensitive to interest rate movements. When the Fed was hiking aggressively back in 2022-2023, no major bank benefited more than BofA from the jump in net interest income. But we're in a rate-cutting cycle now, and that's not great news for their bottom line compared to peers.

There's also the valuation angle. Back in 2011 when Buffett invested $5 billion into BofA during their crisis, the stock was trading at a 68% discount to book value. Last October? It was sitting at a 39% premium to book value. That's not the bargain it used to be, and Buffett's notoriously picky about valuations.

Here's where it gets interesting though. While Warren Buffett's been dumping Bank of America and basically everything else for the past 11 quarters (net seller to the tune of $177 billion), there's one stock he absolutely cannot stop buying. Pool Corp.

Four straight quarters of purchases. Q3 2024 saw 404k shares bought, then 194k in Q4, jumped to 865k in Q1 2025, and then absolutely ramped up to nearly 2 million shares in Q2. That's the kind of conviction buying you don't see very often these days.

Why Pool? It's a cyclical business, sure, but it's got something most cyclical stocks don't. Recurring revenue. Once someone installs a pool or spa, they need maintenance supplies and equipment constantly. It's not a one-time purchase. Pool's also evolved beyond just retail distribution. Their Pool360 platform is becoming a software play for service professionals, handling scheduling, billing, automation. That's margin expansion built into the model.

Plus, the math on this stock is absolutely wild. Since their IPO back in October 1995, Pool stock has returned over 42,400% including dividends. That's the kind of long-term compounder that probably appeals to how Warren Buffett actually thinks about businesses.

Tariffs might create some near-term headwinds for cyclical plays like Pool, but Buffett's clearly seeing something durable here. The contrast is pretty stark though. Bank of America? Selling aggressively. Pool? Can't buy enough. Says a lot about where he sees the real value right now.