Bank of America (BAC)

Berkshire is selling some of their shares, a big holding, but doesn't know why. (Is Berkshire raising cash?) Trading at an historical discount in terms of book value and earnings. Banks are heading to a good place because the yield curve is normalizing as rates fall.

Buffett is selling his holding, but if things were very wrong with BAC Buffett would be selling a lot faster. He himself holds a small position. He predicts BAC will benefit from a massive IPO, maybe later next year in a new M&A cycle.

Berkshire trimmed some BOA shares. We're late cycle: credit card delinquencies have jumped from 5% to 11% in a year. Nothing is wrong with BOA. It's fine to trim shares in companies and build Berkshire's war chest.

Is a good play on the US economy, which won't enter a recession. Rate cuts will help. Prefers JPMorgan.

Always interesting when Mr. Buffett sells assets, to be taken with a grain of salt. BRK has a much different time horizon, could just be realizing full value, might just be pivoting to better opportunities. Great quality. If you own it, still a good core holding. Better opportunities out there, but don't exit completely.

Wants to see stronger revenue growth, further reduce debt ratio, continue delivering shareholder returns. 

Great business. Executed well. Too big to make acquisitions anymore. Can grow nicely on retail, credit card, investment banking, and brokerage sides.

Despite economic slowdown, banking industry not facing a crisis. Lots of capital to buy back shares or increase dividend. It's not 2008 or 2020 again. Loan losses have gone up, but they've reserved a lot. Plus, US banks can cut costs a lot faster than Canadian banks.

Scores 8/10 fundamentally. One of the largest financial institutions in US, with more than $3T of assets. When it gets too big a position, she trims a bit, and then lets the profits ride.

There's exuberance on today's results. BAC is set up for success. Capital markets will benefit from more activity, and are set up for a steepening yield curve if Trump is president (and he imposes tarfiffs which raises inflation). Also, they're in strong financial shape

High quality. Growth. Stress tests have been good. If you don't want to be penalized by the currency exchange, consider buying the CDR, for which you pay a small fee.

After last year's regional bank meltdown, Washington will now backstop them to prevent contagion. But recently BAC's CEO said that bank net interest margins may be suspect going forward, because the consumer is weakening. That said, BAC is well priced and their dividend will grow. Happy to own this.

Great stock. 11x earnings too cheap. Buy more. Solid dividend. 

Higher rates benefit banks because it raises their earnings. Also, consumers in the US are not under pressure (defaults aren't rising). He likes US banks and has bought and sold this. He's waiting to see what US bank earnings look like. This is one of his bank choices.

BAC has shown recent strength with a rally, with their Merrill Lynch franchise helping earnings and is better than Citi. Citi is a turnaround story as they reduce staff and streamline. Citi have risen recently though.

Does not own shares. Would prefer Morgan Stanley. Diverse business - not as focused on investment banking. Important to remember interest rate exposure. If rates fall - will be good for business. Mortgage rate renewal will also affect business. Would watch closely.