Buffett's Bank Stock Strategy: Is His Profit on Bank of America a Reason to Invest in These Promising Banking Turnarounds?

Warren Buffett, the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has a reputation as a buy-and-hold investor thanks to long-term holdings like Coca-Cola (NYSE: KO) and American Express (NYSE: AXP). But he doesn't treat every investment like that. Some are opportunistic situations that he capitalizes on relatively quickly when he's got a profit. That's how Bank of America (NYSE: BAC) has turned out. Should you follow Buffett's lead and look at bank stocks like New York Community Bancorp (NYSE: NYCB) and Toronto-Dominion Bank (NYSE: TD)?When the Great Recession hit, Bank of America attempted to capitalize on the situation by acquiring Countrywide Financial. That didn't work out well, as the mortgage sector wound up being a cesspool of poor lending decisions. Bank of America found itself in trouble to the point where it had to cut its dividend to a mere token penny per share per quarter. That's an admission that the situation was pretty dire.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool