Buffett Stock Portfolio: Top 10 Stock Picks for 2024

2. Bank of America Corporation (NYSE:BAC)

Stake Value as of Q2 2024: $41,076,524,279

Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the United States, serving individuals, small and medium-sized businesses, large corporations, and governments through a wide range of banking services.

It is among the stocks affected by Warren Buffet’s ongoing selling spree, as the billionaire sold batches of BofA shares this year. Despite that, Bank of America is still one of the top picks from the Buffet portfolio. As of June 30, 2024, the billionaire had $41 billion of investments in the company, accounting for 14.67% of his overall portfolio.

During Q2, the company reported robust financial results, with revenue totaling $25.38 billion. This was up one percent year-over-year, driven by increased non-interest income, asset management and investment banking fees improvements, and a surge in trading revenue. Net income for the quarter was recorded at $6.9 billion, representing an EPS of $0.83, which beat analysts’ expectations by three cents.

There were also some bearish trends during the quarter. Bank of America saw its global banking results decline, with earnings for the quarter totaling $2.1 billion, down 20% from last year. This was attributed to lower net interest income and higher provision expenses during the quarter. Global banking revenues also dropped 6% due to deposit rotation and the impact of interest rates. On the other hand, while the company’s financial position remains strong – with $3.26 trillion in assets and a CET1 ratio of 11.9% – overall deposits declined $36 billion during the quarter due to seasonal customer payments of income taxes.

However, the company’s future outlook is still promising, with forecasts of low-single-digit growth in deposits and loans during the back half of 2024. Moreover, the management also anticipates net interest income to grow in the third and fourth quarters of the year, provided the Federal Reserve cuts interest rates. Investors remain confident about the company’s prospects ahead. Diamond Hill Large Cap Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q2 2024 investor letter:

Other top contributors in Q2 included Bank of America Corporation (NYSE:BAC) and Extra Space Storage. Shares of financial services company Bank of America rose in the quarter as it looks increasingly likely net interest income will inflect and begin growing again in 2024’s back half and into 2025.

According to Insider Monkey’s database for Q2 2024, 92 hedge funds held investments in the company, up from 82 during the previous quarter.