Will Bank of America Be a Trillion-Dollar Stock by 2030?
Bank of America (NYSE: BAC) is the second-largest bank by assets in the U.S. and has become one of the market's most popular publicly traded bank stocks. Warren Buffett and Berkshire Hathaway have made Bank of America the second-largest position in their massive $329 billion equities portfolio. With a current market capitalization of more than $256 billion, can it reach $1 trillion by the year 2030? Let's take a look.
I don't think anyone can say that Bank of America's CEO Brian Moynihan hasn't done a great job transforming the bank over the past decade after shares fell below $4 following the Great Recession.
The bank has greatly improved its deposit base and now has $1 trillion in mostly low-cost retail deposits, which tend to stick around much longer in a rising-interest-rate environment. Bank of America has built one of the leading commercial lending franchises in all of banking. Its investment banking division is now considered a powerhouse and one of the big players in the industry, and the bank has invested heavily in its technology stack, which is really starting to pay off. Here's how the bank's market cap has grown over the years.
Source Fool.com
