2. Bank of America Corporation (NYSE:BAC)
Bridgewater Associates’ Stake Value: $101,419,000
Percentage of Bridgewater Associates’ 13F Portfolio: 0.55%
Number of Hedge Fund Holders: 72
Bank of America Corporation (NYSE:BAC) is a multinational investment bank engaged in financial services including asset management, commodities, equities trading, insurance, investment management, mortgage loans, mutual funds, private equity, risk management, and wealth management.
Ray Dalio, as of Q3 2021, boosted his stake in Bank of America Corporation (NYSE:BAC) by 24%, making it one of the best finance stocks to buy according to the billionaire. Dalio, via Bridgewater Associates, owns a $101.4 million position in Bank of America Corporation (NYSE:BAC), which represents 0.55% of the fund’s total investments.
Bank of America Corporation (NYSE:BAC) announced earnings for the third quarter on October 14, posting an EPS of $0.85, beating estimates by $0.15. The Q3 revenue was up 11.33% from the prior-year quarter, equaling $22.77 billion, surpassing estimates by $1.16 billion.
UBS analyst Erika Najarian assumed coverage of Bank of America Corporation (NYSE:BAC) on December 9 with a Buy rating and a $64 price target, naming Bank of America Corporation (NYSE:BAC) her top pick among the U.S. large cap banks.
Of the 72 hedge funds that were bullish on Bank of America Corporation (NYSE:BAC) in Q3, Berkshire Hathaway is the largest stakeholder of the company, with more than 1 billion shares worth $42.8 billion.
Here is what Oakmark Funds has to say about Bank of America Corporation (NYSE:BAC) in its Q3 2021 investor letter:
“Earlier this year, one of our holdings, Bank of America, 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.”
