1. Bank of America Corporation (NYSE:BAC)
Berkshire Hathaway’s Stake Value: $44.9 billion
Percentage of Berkshire Hathaway’s 13F Portfolio: 13.57%
Number of Hedge Fund Holders: 84
Bank of America Corporation (NYSE:BAC) is another centuries old bank that is headquartered in Charlotte, North Carolina, United States. It has a large list of customers, which includes private individuals, businesses, governments, institutional investors, and large corporations.
Berkshire Hathaway’s $44.9 billion stake in Bank of America Corporation (NYSE:BAC) during the fourth quarter of last year was the second largest holding in its investment portfolio and it came through the firm owning one billion shares of the bank. 84 out of 924 hedge funds surveyed by Insider Monkey during Q4 2021 also owned Bank of America Corporation (NYSE:BAC) shares.
Bank of America Corporation (NYSE:BAC) raked in $22 billion in revenue and $0.82 in GAAP EPS for its fiscal Q4, beating analyst EPS estimates and missing them for revenue. Morgan Stanley upgraded its stock rating to Equal Weight from Underweight in March 2022, but cut down the price target to $49 from $51, stating that increasing inflation grows credit risk and requires more liquidity.
Natixis Global Asset Management’s Harris Associates is Bank of America Corporation (NYSE:BAC)’s largest investor after Berkshire Hathaway. It owns 53 million shares worth $2.3 billion.
Oakmark Funds mentioned the bank in its third-quarter 2021 investor letter. Here is what the fund said:
“Earlier this year, one of our holdings, Bank of America Corporation (NYSE:BAC), announced that it was raising its minimum hourly wage from $15 to $20 and would increase it to $25 by 2025. The company received great press for placing the well-being of its employees above profits. But was it really either/or? Bank of America’s chief human resources officer spoke to the bigger picture: “A core tenet of responsible growth is our commitment to being a great place to work…that includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.” Bank of America understood that engaged, high-caliber employees are more productive, less prone to turnover and, therefore, less expensive in the long run. Increasing the pay for employees wasn’t elevating employees above shareholders; it was the right thing to do for employees and for shareholders.
If an increase to $20 was good, why stop there? Why not $50 per hour? Because the benefits the business receives at $50 don’t justify the expense. The bank would no longer be able to price its products competitively and would lose business. The employees would “win” in the short term, but eventually the lost business would lead to job cuts, meaning both employees and shareholders would lose. The negative effects of stakeholder overreach are no different than when CEOs overreach to inflate short-term profits. Both hurt shareholders and stakeholders.”
Disclosure: None. You can also take a look at 10 Best Growth Stocks Under $10 and 12 Best Large-cap Biotech Stocks To Buy Now.
