2020 has been a rough period for the banking sector. The [[XLF]] (Financial Select Sector SPDR ETF) has declined 18% year to date. Headwinds include record-low interest rates and a coronavirus-fueled economic slowdown, which has hindered loan growth and clouded visibility on credit risk.
Despite the near-term challenges, Warren Buffett saw opportunity this summer, aggressively acquiring more shares of Bank of America (BAC). With an investment of over $2 billion, Berkshire (BRK.A)(BRK.B) now owns approximately 12% of the bank. And BAC is now Berkshire's second largest holding worth over $20 billion.
As contrarians,