3. Bank of America Corporation (NYSE:BAC)
Bank of America Corporation (NYSE:BAC) is included in our list of the best Warren Buffett stocks.
Bank of America Corporation (NYSE:BAC) has remained in Warren Buffett’s holdings since 2011, when the billionaire acquired a $5 billion stake in the bank through preferred shares. Later, in Q3 2017, he acquired 679 million common shares, which translated into a $17.21 billion stake.
Despite reducing his stake, Buffett enjoyed a significant return through BAC stock over the years. As of Q4 2025, Berkshire’s investment in the bank totals $28.45 billion, representing 517.30 million shares.
Bank of America Corporation (NYSE:BAC) remains popular among hedge funds as well, with 118 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the company totals $39.26 billion as of Q4 2025.
Bank of America Corporation (NYSE:BAC)’s bullish case centers on the view that a high-quality, diversified financial franchise continues to be valued based on near-term uncertainties rather than its long-term earnings power and capital return potential. While the stock is down under 3% in 2026 so far, it is gaining momentum, with a one-month gain of roughly 14% as of April 20, 2026.
A bullish thesis published on The Passive Income Portfolio’s Substack argued that concerns around net interest income, commercial real estate exposure, and unrealized HTM losses have overshadowed Bank of America Corporation (NYSE:BAC)’s core strengths, including its large low-cost deposit base, diversified revenue streams across Global Banking and Merrill’s wealth management platform, an payout ratio of around 32%, a 12-year track record of dividend growth, and continued capacity for share buybacks and dividend increases.
This view is further supported by management commentary and recent operating trends.
Meanwhile, in January 2026, Jim Cramer said Bank of America Corporation (NYSE:BAC) trading at 15 times earnings was “an insult” to CEO Brian Moynihan and later described the bank as one that can deliver strong long-term returns even if the sector faces near-term pressure.
On March 10, 2026, Co-President Dean Athanasia noted that first-quarter net interest income was tracking at least 7% higher year-over-year, with investment banking revenue projected to increase about 10% and Markets revenue growth guided in the low double-digit range.
Management’s fourth-quarter 2025 results added to this case, which featured 7% year-over-year revenue growth, 18% EPS growth, and 10% NII growth. The company also reported 28 consecutive quarters of new net checking account growth, returned more than $30 billion to shareholders in 2025, and maintained an 11.4% CET1 ratio, reinforcing the view that BAC remains a durable compounder despite Basel III, CCAR, CRE, and HTM-related risks.
Bank of America Corporation (NYSE:BAC) is a bank and financial holding company that operates in the Consumer Banking, Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets segments.
2. American Express Company (NYSE:AXP)
American Express Company (NYSE:AXP) is one of the best Warren Buffett stocks.
During the initial wave of consumer credit in the 1960s, American Express Company (NYSE:AXP) drew Buffett’s attention, prompting his acquisition of a 5% stake in the company. The company remains one of Berkshire Hathaway’s longest-held positions, appreciating significantly over the years. As of Q4 2025, the stake had grown to more than $56 billion, a massive increase from the Q4 2010 stake, valued at over $6.51 billion.
Meanwhile, American Express Company (NYSE:AXP) enjoys the confidence of hedge funds, with 83 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the company totals $61.45 billion as of Q4 2025.
As of the same period, billionaire sentiment remains strong as well, with 22 out of 107 billionaires remaining bullish on American Express Company (NYSE:AXP), which translates into a $60.47 billion stake.
The bullish case for American Express is built on resilient spending from affluent customers, strong demand for premium cards, and a business model that continues to translate customer engagement into earnings growth and shareholder returns. While the stock is down 10% year-to-date, it climbed over 12% over the past month, as of April 20, 2026.
Meanwhile, discussing American Express Company (NYSE:AXP) in its Q4 2025 investor letter, GAMCO Investors, a diversified asset management firm, grouped AXP with other financial holdings that are benefitting from a steeper yield curve, a recovery in deal-making activity, a strong equity market, and solid spending by wealthier customers.
Additionally, Bretton Fund, a mutual fund, expressed a similar view more directly in its Q4 investor letter, noting that cardholders continued to spend and make timely payments, while the Platinum Card remained in high demand despite increasing competition. The firm also highlighted that EPS grew 15% and the stock delivered a 26% return during the quarter.
Jim Cramer commented at the start of April:
“I think that American Express was one of the worst performers. I think American Express down 17% seems pretty interesting to me. I’m willing to take a, I hate to say this, but a flyer, on some of these travel names, betting that they were too linked with gasoline. With gasoline, now breaching four dollars, but it can start coming down if the President says tonight, that the war’s going to end soon.”
Management’s fourth-quarter 2025 commentary earlier in 2026 supplemented this outlook.
The company reported record full-year 2025 revenue of $72 billion and EPS of $15.38, with card-fee growth in the double digits for the 30th consecutive quarter and strong credit quality. Millennials and Gen Z accounted for the largest share of U.S. consumer spending, while demand for premium products remained strong. The company also guided 2026 revenue growth of 9% to 10%, EPS in the range of $17.30 to $17.90, and a planned 16% increase in its dividend.
American Express Company (NYSE:AXP) operates as a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring, and network businesses serve a wide range of customers, including consumers, small businesses, mid-sized firms, and large corporations worldwide.
