BAC (Bank of America)

Discussion in 'Stocks' started by diablo11, Aug 8, 2012.

  1. Bruce Berkowitz was quoted yesterday:

    Defending another big investment, Bank of America(BAC), Berkowitz writes that the bank "is returning to its retail roots (think of Wells Fargo(WFC)) with a $1 trillion deposit franchise and that bank profits will skyrocket as legacy real estate loans burn-off."

    He makes a good argument for sticking with his massive position in BAC, comparing it to his investment in Wells 20 something years ago. Is this time different in that there will be no catalyst to burn off these bad loans? If he's right its really cheap here but with that being said so is the whole Financial sector.
  2. hughb


    A good friend of mine bought a half mil worth of BAC when it was a little over 8. He died a couple of weeks ago and his daughter inherited it.
  3. ==========
    His daughter will probably make plenty of money on it;
    even if it trends sideways around W Buffets price of $7.07/+. She still probably will do well ...

    And true while the big bank sector has some of the worst fundaments/lawsuits of most any sector.Lets say with dividends[not a prediction] she has about 77,888 shares[about half a million /+ $ ] I still think she may do well, even if it downtrends to $5.00, she still does well-volume adds up.

    As far as 20 & 25 year charts fine, as far as WFC being a well run big bank fine.

    Actually BAC real estate should be worth maybe much more...But remember what happened toCounrtywide, LEH,Bear Stearns[big bank sector trends ]Some of those big bank traders screamed in agony''come on man our real estate is worth more than $2 a share ...''

    Hopefully she is as diversified as Warren Buffet;
    & has a selling plan.

  4. BAC should be solid for the long term, they have a lot of work to do but they (post 2008-09) have the right management in place to do so, anywhere under $8 or $8.25 you should have some good upside in a year or longer period, if of.course the bond bubble doesn't happen
  5. hughb


    Back in April of this year my friend and I were discussing his huge position in BAC as it was bumping up against 10. I told him that the charters of some mutual funds prohibited them from buying stocks under $10 a share and that if BAC could break throught 10, it would probably have a rip roaring rally as more and more funds piled on. Alas, it never did, and he passed away back in July, and his daughter inherited the stock.

    I would guess that his estate is still in probate, and she hasn't sold it yet, and I can see it bumping up against 10 again. I wish my old friend was still here to see it, he really liked his BAC stock. Even though he was more of a value investor, he would still dump a loser fast, but he held on to that goddamb BAC. He'd be sitting on his couch, watching the ticker scroll across the bottom of the TV screen on CNBC, writing down the price of BAC every time he saw it. He wrote it on scraps of paper, when I cleaned out his apartment after he passed, there was all of these envelopes, mailing slicks, etc. with his stock prices and times written down, a manually written T&S report. He never owned a computer or saw the internet in his life.