BAC
🏦 Warren Buffett invested in Bank of America during the 2008 financial crisis and again during the 2011 European debt crisis.
💰 These investments were made when there was widespread fear about the stability of banks.
📈 Bank of America’s stock eventually multiplied, demonstrating the potential for high returns when investing in fundamentally sound companies during times of crisis.
@Artedeinvertir:
“An example of this is the operation that Warren Buffett did in the financial crisis of 2008 with American banks, especially with Bank of America. Bank of America, as you can see here, was trading at 50 and collapsed to less than 2 or 3. Obviously, no one buys at the lows. Warren Buffett invested a lot at 4 and 5, both in the purchase of shares and debt or credit lines. Why? Because everyone thought that any bank could go bankrupt, and he had done his analysis to try to separate and say, well, Bank of America is one of the largest banks in the world, it has not committed the excesses that other banks have done, so it may be one of the surviving banks. And also, as there will be less competition, it may even earn more money than before that crisis. So, he started investing, as you can see here in the first red arrow, the stock began to recover, so far so good, we celebrate, he is making money, but suddenly there is another crisis again. What happened in 2011? The European debt crisis and the problems of Greece that we all know, and that had a contagion effect on the rest of the banks. So, the second fall in the stock happened again and went back to the range of 5 to 8 again. So, Warren Buffett invested again, and he did not make a small investment. At that time, it was very large because it was 5 billion dollars at a time when there were also many cheap investments. And then, as usually happens in the stock market, there will not always be negativity, the crises will not last forever, neither at the economic level nor crises at the level of each listed company, and it had an exceptional return where the stock multiplied by nine times up to almost 4550 per share. In fact, here you have this article from Fortune magazine where they echoed the incredible investment that Warren Buffett had made and how it had brought him a profit of 133.5 billion dollars. And in fact, it is curious that after this article in 2017, the stock continued to rise.”
Watch the exact part of the video where Warren Buffett talks about Bank of America here:
View the video on YouTube.
Read more articles featuring the most recent analysis of Bank of America (BAC) at this link: BAC stock.
