Bank of America Corporation (NYSE:BAC) is included in our list of the best Warren Buffett stocks.
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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. The Passive Income Portfolio, a Substack publication, focuses on dividend growth investing and strategies, helping investors build long-term wealth through compounding returns.
That 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.
While we acknowledge the risk and potential of BAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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