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How Long Does Buffett Plan On Owning Bank Of America? A 'Long, Long, Long Time'

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How Long Does Buffett Plan On Owning Bank Of America? A 'Long, Long, Long Time'
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Billionaire investor Warren Buffett thinks that asking him to select his favorite bank stock is similar to asking a parent who their favorite child is. While most parents won't admit to having a favorite child, Buffett has no problem calling out his favorite, Bank of America Corp (NYSE: BAC).

Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) happens to be Bank of America's single largest shareholder and also holds notable stakes in other major banks, including Wells Fargo & Co (NYSE: WFC) and Bank of New York Mellon Corp (NYSE: BK).

But Bank of America is special as it has been performing sensationally under its CEO Brian Moynihan, Buffett told CNBC's Becky Quick in an interview Tuesday. When Moynihan took over the CEO title in 2010, he inherited "all kinds of problems."

"He had a lot of rocks to turn over and it cost a lot of money and he just set out step by step to bring the bank back and he's gone from 280,000 or so people down to 210,000," Buffett explained. "He's gone from a run rate of expenses in the $70 billions to $54 billion."

Moynihan's dedication and effort to improving the bank have earned Buffett's seal of approval for the very long term.

"We will be holders of BofA stock for a long, long, long time," Buffett concluded.

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Image Credit: By USA White House, Public Domain, via Wikimedia Commons

Posted-In: bank stocks banks Becky Quick Brian Moynihan CNBCTop Stories Media Trading Ideas Best of Benzinga

 

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