10 Best Stocks to Buy According to Billionaire Warren Buffett

3. Bank Of America Corp (NYSE:BAC)

Portion of portfolio: 11.18%

Value of holdings: $29,896,266,149  

Bank of America Corp (NYSE:BAC) is a global banking powerhouse providing various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations and governments, garnering significant revenue from interest income on loans and mortgages. It boasts a client base of 68 million, operating 3,900 branches, 16,000 ATMs and serving 56 million digital users.

Buffett cut his holdings of Bank Of America by 15% sequentially to 680,233,587 of its shares.

Hardman Johnston Global Equity Strategy highlighted in its fourth quarter 2024 investor letter that Bank of America Corporation’s management sees a big opportunity going forward in growing and monetizing its mass retail client base.

The company is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Tuesday, Apr. 15. Analysts expect this financial giant to report a profit of $0.80 per share, down 3.6% from $0.83 per share in the year-ago quarter, according to Barchart.com. In 2024, the company’s financial performance demonstrated resilience, with revenue rising 11.94% year-over-year to $192.4 billion, while net income increased 2.6% to $25.5 billion. In the fourth quarter, the company posted a net income of $6.7 billion, or $0.82 per share, while revenue climbed 15% to $25.3 billion.

According to a bullish thesis on Bank of America Corp on Substack by Easy Trader, Bank Of America, as one of Warren Buffett’s top portfolio holdings, stands out compared to peers like JPMorgan Chase and Citigroup, due to its leadership in digital banking, sustainable finance and robust deposit growth. Favored by 18 billionaire investors as of first quarter of 2024, Bank of America is one of the best financial stocks to invest in.

On April 3, the company’s shares decreased 5.3% to $39.63 on the heels of President Donald Trump’s unveiling of global reciprocal tariffs during a Wednesday event at the White House. Bank of America shares traded at $39.54 per share on April 24 at the time of writing. Year-to-date the share price lost 10% in its value.