Just caught something interesting in Berkshire's latest 13F filings. Warren Buffett has been quietly dumping Bank of America shares like crazy over the past year - we're talking 427 million shares, which is literally 41% of the position they held mid-2024. Meanwhile, the guy who's basically the oracle of finance keeps buying into Pool Corp every single quarter. Pretty wild contrast.

So what's going on with the BofA exit? Sure, profit-taking at favorable tax rates is part of it - Buffett mentioned that strategy during last year's annual meeting. But there's more to the story. Bank of America is super sensitive to interest rates, right? When the Fed was hiking aggressively, BofA's net interest income shot up like crazy. Now we're in a rate-cutting cycle and that advantage disappears. Plus, the valuation math doesn't work anymore. Back in 2011 when Buffett loaded up, BofA was trading at a 68% discount to book value. Today? It's sitting at a 39% premium. That's not the bargain hunter's dream it used to be.

Now flip to Pool Corp - this is where Buffett's been consistently putting money. Four straight quarters of buying, ramping up from 404k shares in Q3 2024 to almost 2 million in Q2 2025. Why? Classic Buffett logic. Pool operates in a cyclical business, but the kind where you spend way more time in growth than in downturns. Plus, once someone installs a pool, they need maintenance supplies forever. That's recurring revenue, predictable cash flow. The company's also getting creative - their Pool360 platform isn't just e-commerce, it's software for professionals to manage their entire operation.

Here's the kicker: Pool stock is up over 42,400% since going public back in 1995. Even with Trump's tariff uncertainty hanging over cyclical names, Buffett clearly sees structural advantages here that BofA just doesn't have anymore. It's a textbook case of rotating out of something that's lost its edge and into something with real competitive moats.