This Is Now Warren Buffett's Favorite Banking Stock
Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) chairman and CEO Warren Buffett is an unabashed fan of finance industry stocks. Exactly half of Berkshire's top 10 holdings by market value are financial-service concerns or other companies that somehow fit into the sector. For many years, the company has owned especially massive stakes in both Wells Fargo (NYSE: WFC) and American Express.
However, neither of these stalwarts is Buffett's current favorite in the sector, despite how much money they've made for him over the years. Instead, that honor goes to a different bank.
These days, Buffett's banking baby is Bank of America (NYSE: BAC). We shouldn't be surprised; this summer, Berkshire cashed out of a big stack of warrants it owned in the company, netting it 700 million common shares of stock, which made it the largest single shareholder. That move also produced an instant on-paper profit of $12 billion.
Source: Fool.com
