Berkshire Hathaway's Billion-Dollar Bank Bet: Should You Follow Buffett?

As of August 25th, 2025, Warren Buffett's Berkshire Hathaway conglomerate owns a significant stake in Bank of America, the second-largest bank in the United States. Berkshire's holding of over 605 million shares in the bank is valued at a staggering $29 billion, making it the third-largest position in the company's portfolio.

Despite the ongoing economic uncertainty and concerns about a potential recession, Bank of America has continued to deliver strong financial results. In the second quarter of 2025, the bank reported a 4% year-over-year increase in net revenue, along with a 7% growth in loans. Additionally, net interest income has been on the rise for the fourth consecutive quarter, and the bank's credit quality has improved, with a lower net charge-off rate compared to the same period in 2024.

Bank of America's success can be attributed to its diversified business model, which spans consumer and small business banking, corporate and investment banking, capital markets, and wealth management. This diversification allows the bank to offset weaknesses in one segment with stronger performance in others, making it a resilient and dominant player in the financial services industry.

Investors may want to follow Buffett's lead and consider adding Bank of America to their portfolios. The bank's massive scale and diversified operations provide it with a significant cost advantage and create high switching costs for customers, effectively building a durable competitive moat. These factors, combined with the bank's consistent profitability, make it an attractive investment opportunity, even in the face of a potential economic downturn.