Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Bank of America-Part2

  Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Bank of America-Part2   Now it's time to examine the second important stock of the portfolio.  

• Bank of America: 13.2% of invested assets

While Apple AAPL (NASDAQ) $147,54 0,00 (%0,00) is one of the most important stocks and arguably Berkshire's largest holding, Buffett's favorite place to run his company's money is bank stocks. Bank of America BAC (NYSE) $42,33 +0,28 (+%0,68) is his favorite bank stock. Actually Generally speaking, Omaha's Oracle is known to love  cyclical companies. By comparison, it should be noted that periods of economic expansion usually last for years, perhaps even ten years. In terms of location, bank stocks like BofA are in the perfect place to take advantage of these long-term expansions.

Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Bank of America-Part2

Among banks, Bank of America is also one of the most interest-sensitive of money-centered banks. In the company's final quarterly presentation, BofA states that a parallel shift in the interest rate yield curve of 100 basis points will generate an estimated $8 billion in net interest income over the next 12 months. When the Federal Reserve inevitably raises rates, Bank of America will surely be the first to take advantage of them. It is also necessary to examine BofA's advanced digital engagement trends. Since many of its customers have recently switched their banking transactions to the Internet or mobile devices, BofA has also reduced its non-interest expenses by consolidating some of its branches. Due to a rich history of dividend payments and share buybacks, Bank of America has long been a Berkshire Hathaway must-have.

Here Are The Stocks That Make Up 70% Of Warren Buffett's Portfolio- Bank of America-Part2

 

Source: The Motley Fool

 

You may also be interested in:

 

Here Are The Stocks That Make Up 70% Of Warren Buffett’s Portfolio-Apple (Part1)