With Warren Buffet increasing Berkshire Hathaway's (BRK.A) (BRK.B) stake in Bank of America (BAC), investors are well advised to look seriously at bank stocks.
No question, the immediate outlook is ugly for bank earnings. Weak interest margins, very high provisioning expenses, and the uncertainties of the stop-start nature of the economic recovery from the COVID-19 pandemic offer little comfort.
In spite of this, Buffett increased his position in BAC.
BAC is a good reference point for the stock I am writing about today, Wells Fargo (WFC). There are key similarities between