Mohnish Pabrai’s 5 Biggest Investments in 10 Years

4. Bank of America Corporation (NYSE:BAC)

Value of Pabrai Investment Funds’ 13F Position: $115 million (Q4 2013)

Stock Performance Since Q4 2013: +98.3%

Number of Hedge Fund Shareholders (Q1 2023): 95

Pabrai added a large stake in BAC to his 13F portfolio in the third quarter of 2011 and the company was his top stock pick for several quarters over the following three years. As noted earlier, Pabrai began trimming his positions in financial stocks in 2015, with Bank of America Corporation (NYSE:BAC) being sold off in the first quarter of that year.

Bank of America Corporation (NYSE:BAC) is enjoying a strong run of success on the back of the rebounding U.S. economy, posting double digit top and bottom line growth in the second quarter. Net interest income was particularly strong, growing by 14% during the quarter as Bank of America added another 157,000 checking accounts to its books. The company also announced a dividend raise of 9%, pushing its yield above 3%, or more than double the average yield of the companies in the S&P 500.

Oakmark Equity and Income Fund cited Bank of America Corporation (NYSE:BAC) as one of its biggest recent detractors in the fund’s Q2 2023 investor letter:

“Two financial industry companies led the six-month detractors’ list, however. Charles Schwab and Bank of America Corporation (NYSE:BAC) both reported material mark-to-market unrealized losses in their marketable securities holdings, an outcome of the increase in interest rates early in the year.”