Warren Buffett’s Performance in 2021: 5 Best Stock Picks

3. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 72   

Gain in 2021: 48%   

Bank of America Corporation (NYSE:BAC) is perhaps one of the best investments of Warren Buffett. The legendary investor first bought a stake in the bank in the third quarter of 2017 and has since added to it significantly. The holding has grown in value to around $42 billion and represents over 14% of the Berkshire Portfolio. It is the second largest holding in the portfolio behind tech giant Apple and ahead of American Express. 

Bank of America Corporation (NYSE:BAC) is one of the largest banks in the US and naturally attracts lots of hedge fund interest. At the end of the third quarter of 2021, 72 hedge funds in the database of Insider Monkey held stakes worth $46.4 billion in Bank of America Corporation (NYSE:BAC), compared to 87 in the previous quarter worth $46.5 billion.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Bank of America Corporation (NYSE:BAC) was one of them. Here is what the fund said:

“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”