5 Best Warren Buffett Stock Picks for Beginners

In this article, we discuss the 5 best Warren Buffett stock picks for beginners. To read Warren Buffett’s investment strategy and Q2 bets of Berkshire Hathaway, go directly to the 13 Best Warren Buffett Stock Picks for Beginners.

5. Bank of America Corporation (NYSE:BAC)

Percentage of Warren Buffett’s Stock Portfolio: 8.51%

Number of Hedge Fund Holders: 90

Bank of America Corporation (NYSE:BAC) is one of the largest banking institutions in the United States. Even though it ranks at 5th on our list of Warren Buffett’s stock picks for beginners, it is Berkshire Hathaway’s second-largest holding and covers 8.51% of its portfolio with over 1 billion shares worth $29.63 billion.

On October 17, Bank of America Corporation (NYSE:BAC) reported a GAAP EPS of $0.90 for its third quarter. The company’s net interest income benefited from higher interest rates and loan growth. It showed an increase of 4%. Bank of America Corporation (NYSE:BAC) also exceeded the revenue estimates by $130 million and generated revenues of $25.2 billion, up 2.9% YoY.

On October 18, Bank of America Corporation (NYSE:BAC) declared a $0.24 per share quarterly dividend, payable by December 29 to the shareholders of record on November 30. As of October 25, the company’s dividend yield stands at 3.76%.

Here’s what Diamond Hill Capital said about Bank of America Corporation (NYSE:BAC) in its second-quarter 2023 investor letter:

“Other bottom contributors included SunOpta, Bank of America Corporation (NYSE:BAC) and Texas Instruments. Bank of America (which we added to the portfolio in Q2) is among the US’s largest banks. Shares were pressured during the quarter against a still-challenging backdrop for banks, particularly as investors fret about rising deposit costs and the values of some longer-duration assets in a rising-rates environment.”