Citigroup Inc. (C), Bank of America Corp (BAC) & Wells Fargo & Co (WFC)? 3 Mega-Banks That 3 Investment Pros Love.

Warren Buffett is bullish about this bank in the long run

While Irving Kahn loves Citigroup and Bruce Berkowitz loves Bank of America Corp (NYSE:BAC), the legendary investor Warren Buffett loves Wells Fargo & Co (NYSE:WFC). As of December 2012, Wells Fargo & Co (NYSE:WFC) became Buffett’s top holding. He owned nearly 440 million of the bank’s shares, accounting for around 20% of his total portfolio. It’s a much bigger bank in comparison with Citigroup and Bank of America, with around $194 billion in total market cap. At $37 per share, Wells Fargo & Co (NYSE:WFC) is the most expensively valued at a 30% premium to its book value.

Recently, the Fed has approved the capital plan for all three of these big banks. Citigroup Inc. (NYSE:C), as mentioned above, offers investors the lowest yield at only around 0.9%. Bank of America Corp (NYSE:BAC) intends to repurchase $5 billion in common stock and redeem around $5.5 billion in preferred shares. With a current dividend yield of yield of 0.3%, the total yield will jump to around 4%.

Wells Fargo & Co (NYSE:WFC) seems to be the most interesting with the highest total yield. If Wells Fargo kept the same 2011 repurchase plan, the bank would buy back around $4 billion worth of shares, creating a yield of 2%. Combined with its current dividend yield of around 3.2%, its total yield would be about 5.2%.

My Foolish take

All of these three mega-banks could be included in investors’ long-term portfolios, with their strong franchises, solid balance sheets, and global footprints. I like Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) the most due to their decent total yields.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup Inc , and Wells Fargo.