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.Read more
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.Read more