In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche
I think BOA’s revenues point to an interesting paradox in Fintech; the faster and more efficient Fintech gets, the less money it makes. Digital financial technology makes banks faster and more efficient but they make less money.
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All of this makes Bank of America a value investment because it has a lot of problems, but it’s still capable of making a lot of money. More importantly it’s cheap because the problems scare a lot of investors away.
Those who stay do make money they were rewarded with a return on equity of 8.12% on June 30, 2017. That was up from 6.65% in June 2016, which proves bargain hunters like Warren Buffett are right about this stock.
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