Economic Daily: What does Buffett's reduction in holdings of Bank of America explain? Buffett did not explain the reason for the significant reduction in holdings of Bank of America, and there are many speculations in the market about this. For example, some people believe that Bank of America's valuation is too high, while others believe that Buffett and his investment managers are dissatisfied with Bank of America's management style and see potential regulatory risks. But the most common view is that a significant interest rate cut by the Federal Reserve will affect the profitability of Bank of America.