Bank of America Corp $ 23.29 0.03 (0.13%)
BAC News and Headlines - Bank of Americarp
Thursday’s job report delivered another surprise to forecasters and economists as figures logged another new unexpected record. Meanwhile, Treasury yields offered solace to the heavily penalized big banks.
The U.S. recorded its biggest job increase ever at 2.5 million gains in the month of May. The resilient labor market then delivered another feat this Thursday morning by adding 4.8 million more jobs in June.
Most of the gains in May were attributed to individuals who had been furloughed due to the coronavirus returning to work as well as the large number of workers who were classified as
Well that didn’t last long! On June 18, I wrote about Wells Fargo & Co. (WFC) being “A Sudden Dividend Hotshot."
On June 29 came word that the company would have to cut its dividend after coming up short in the Federal Reserve Board’s most recent stress test. As you may recall, stress tests came out of the carnage in the financial sector during the 2008 financial crisis. The tests are designed to find out how well banks can withstand heightened loan losses.
In a news release dated June 25, the Board wrote, in part:
Dividends play a major role in the performance of an investment portfolio. For this reason, many value investors tend to prefer dividend-paying companies in the hopes of generating a reliable source of income in the current period in addition to the expected capital gains in the future. The big banks in the United States have a history of returning billions of dollars to shareholders, so, for this reason, are adored by income-seeking investors. According to data from Eikon, the financial services sector yields 3.36% as of June 29, ranking fourth in the highest-yielding list. There is, however, an unpleasant reality
Several bank holdings of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A)(BRK.B) surged on Thursday on announcements that the Federal Deposit Insurance Commission (FDIC) laxed restrictions regarding bank investments in venture capital funds.
Shares of Bank of America Corp. (BAC), Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM), three of Berkshire’s top 10 holdings as of the March filing, soared over 3% to 4% on the FDIC’s announcements. Further, JPMorgan and Goldman Sachs Group Inc. (GS) helped propel the Dow Jones Industrial Average to a close of
Warren Buffett (Trades, Portfolio) has attracted a lot of criticism for his lack of action in the March stock market crash and subsequent bounce back. Critics have attacked his decision to sell airline holdings, and his decision not to increase major equity investments in the first quarter.
I should note at this stage that the information we have on Buffett's transactions for this year is, so far, limited. We don't know yet if he's made any moves in the second quarter. On that basis, I think some of the criticism that has been leveled at the Oracle
The pandemic has already pushed the U.S. to an economic recession, according to data from Bloomberg. The first-quarter real GDP growth was negative as expected, and the expectations for the second quarter are bleak.
As investors, however, the focus should be on the long term as the performance of stocks is likely to be driven by the economic growth of the country in the next few years, not the next couple of quarters.
The minutes of the recent Fed meeting released on June 10 reveals that the committee is of the stance that the lockdown will not have a material
Charles de Vaulx (Trades, Portfolio), chief investment officer of International Value Advisors, disclosed this week that he jettisoned four holdings in his IVA Worldwide Fund during the first quarter: Samsung Electronics Co. Ltd. (XKRX:005930), Bank of America Corp. (BAC), Goldman Sachs Group Inc. (GS) and Z Holdings Corp. (TSE:4689). With the proceeds, de Vaulx boosted the fund’s holding in Warren Buffett (Trades, Portfolio)’s conglomerate Berkshire Hathaway Inc. (BRK.A)(BRK.B) and LKQ Corp. (LKQ).
Great investment opportunities are lonely. History shows us the crowd behaviors to avoid and the investment market circumstances to capitalize on. We believe we are at one of the great junctures, where the crowd thinks they unequivocally know the future. Simultaneously, they have left the stocks related to the unknowns for dead. What does history tell us about situations like this? What stocks are mega-cheap based on the unknowns?
History of sure things
Disney (DIS) and Coke (KO) were sure things at the end of 1972 in the “Nifty Fifty.” At 80 times and 60 times earnings, their future
According to top 10 holdings statistics, a Premium feature of GuruFocus, the top five holdings of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A)(BRK.B) as of the March quarter-end were Apple Inc. (AAPL), Bank of America Corp. (BAC), Coca-Cola Co. (KO), American Express Co. (AXP) and Wells Fargo & Co. (WFC).
Commonly known as the “Oracle of Omaha,” Buffett studied under the legendary Benjamin Graham at Columbia University. The CEO of Berkshire took the textile company and transformed it into conglomerate with a market cap over $425 billion.
Francis Chou (Trades, Portfolio), manager of Chou Associates, disclosed this week that he curbed his holdings in DaVita Inc. (DVA), Bausch Health Companies Inc. (BHC), JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) during the first quarter.
Chou, who met Fairfax Financial Holdings Ltd. (TSX:FFH) CEO Prem Watsa (Trades, Portfolio) in the 1980s, said that some of his key investing tips include buying bargains and thinking independently. Chou’s investing process emphasizes the assessment of a company’s balance sheet, cash flow characteristics, profitability, industry position, special strengths, future growth potential and management
SPDR S&P 500
The firm closed its position in SPDR S&P 500 (SPY). The trade had an impact of -18.62% on the portfolio.
The firm trimmed the Aptiv PLC (APTV) stake by 42.39%. The portfolio was impacted by -1.98%.
The auto-parts dealer has a market cap of $18.28 billion and an enterprise value of $23.03 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 60.18% and return
Berkshire Hathaway Inc. (BRK.A) (BRK.B) made headlines when the 13-F filing for the first quarter revealed the slashing of The Goldman Sachs Group Inc. (GS) stake by approximately 84%. In addition, Berkshire cut its stake in JPMorgan Chase & Co. (JPM) by 3%.
Warren Buffett (Trades, Portfolio) is often considered a guru who has remained bullish on the leading American banks throughout the last couple of decades, most notably during the global financial crisis of 2008. This makes the sale of Goldman Sachs shares even more interesting to investors who are keenly following the
Bank of America Corp. (BAC)
The projected economic slowdown and low interest rates have severely weakened banks’ outlooks. Bank of America increased loan loss reserves by $3.6 billion in the quarter. The Fed’s zero interest rate policy is terrible for the entire banking industry. A positive is BAC’s leadership in digital banking with 39.1 million digital customers. They have also kept a clean balance sheet with a common equity tier (CET1) ratio1 of 11.2%. Berkshire Hathaway owns close to a 10 % stake
From [url=https://www.gurufocus.com/StockBuy.php?GuruName=Jeff+Auxier]Jeff Auxier[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Jeff+Auxier]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Jeff+Auxier]Portfolio[/url])'s Auxier Asset Management spring 2020 market commentary.
In the first quarter we witnessed an unprecedented demand shock as many governments around the world instituted stay-at-home social distancing lockdowns to contain the exponentially spreading coronavirus pandemic. In addition to throwing millions out of work, the government mandated shutdowns have led to many supply-demand imbalances. Quality agricultural products are being wasted as demand is shut off from institutions and restaurants. The supply chains cannot adapt fast enough to get food to homes, markets and food banks. Many industries, such as energy, are running out of storage leading to major gluts in supply and material price declines. This contributed to
The Dow Jones Industrial Average closed at 24,133.78 on Monday with a gain of 358.51 points or 1.51%. The S&P 500 closed at 2,878.48 for a gain of 41.74 points or 1.47%. The Nasdaq Composite closed at 8,730.16 for a gain of 95.64 points or 1.11%. The VIX Volatility Index was lower at 33.07 for a loss of 2.86 points or 7.96%.
Monday’s market movers
U.S. indexes started the week higher Monday. In the S&P 500, financials and real estate led gains, with broadening plans for state reopenings. States that have already enacted reopenings include Alaska, Oklahoma, California, Florida,
During the financial crisis in 2008, Warren Buffett (Trades, Portfolio) found himself in high demand. Berkshire Hathaway (BRK.A)(BRK.B) had a bumper year for deal-making, orchestrating large-scale – and ultimately very lucrative – private rescue packages for the likes of Goldman Sachs (GS) and Bank of America (BAC). Yet, as I discussed in the first part of my analysis of Berkshire’s crisis reaction, Buffett has thus far largely kept to the sidelines of the current economic crisis.
No competing the with Feds
One big impediment of late to Buffett’s conventional deal-making strategy has
Steven Eisman, of "The Big Short" fame, appeared on CNBC April 24 for an interview. Eisman, who's known for betting against banks and mortgages in the great financial crisis, now likes the major US banks. He describes them as the best cyclical play out there, as he things they won't be destroying book value and won't need to raise capital. He doesn't mention names, but I assume he's talking about the biggest U.S. banks, J.P. Morgan (JPM), Wells Fargo (WFC), Citigroup (C) and Bank of America (BAC).
In the financial crisis, the banks failed. The government had to
From 2002 to 2019, Berkshire Hathaway (BRK.A) (BRK.B) barely managed to keep up with the S&P 500 Index. Many investors have hoped that CEO Warren Buffett (Trades, Portfolio) would be able to turn things around by deploying the $128 billion in cash on Berkshire’s balance sheet, especially during a downturn when bargains are more plentiful.
Waiting for an opportunity
With asset prices soaring ever higher during the decade-long bull market following the Great Recession, Berkshire has found it increasingly difficult to identify
According to the GuruFocus All-in-One Screener as of April 21, the following banks are popular among gurus.
Bank of America
Bank of America Corp. (BAC), which operates as a consumer and global banking institution, has a market cap of $195.20 billion. Its revenue of $91.07 billion has grown 4.40% over the past five years.
The company is held by 38 gurus, the largest of which is Warren Buffett (Trades, Portfolio) with 10.60% of outstanding shares, followed by Dodge & Cox with 1.30% and PRIMECAP Management (Trades, Portfolio) with 0.43%.
As of April 21,
You have to love The Wall Street Journal writer, Jason Zweig. His extremely inciteful “Intelligent Investor” column could be called “Jason’s Wet Blanket” because he seems to throw a wet blanket on most investment disciplines in U.S. stocks. This week’s wet blanket is designed to create even more desperation for value investors via his interview with Charlie Munger (Trades, Portfolio).
Rather than telling Zweig to be “greedy when others are fearful,” Munger talked about protecting Berkshire Hathaway (BRK.A) (BRK.B) “for those who have 90% of their net worth in the stock.” Munger’s first point was that nobody