Quote:
Originally Posted by GregWeld
I've been a client of Bank of America (BAC) for YEARS.... but have never done anything with them except checking -- and trust me when I say I burn their Alaska Airlines VISA down every month. Other than that - I'm in your camp - as a bank they suck.
Because of that -- I own Wells Fargo (WFC) -- in full discloser I own 15,000 shares -- because Warren Buffet is a HUGE investor in WFC -- and the little amount of dealings I've personally had with them - I was really impressed. While it's one of the smallest dollar amounts I have in an investment - it's one
of my biggest gainers... but I bought WAY AHEAD of when I thought I saw the economy turning the corner.
EITHER ONE - when we're going in to a better housing market with incrementally higher mortgage rates etc - is a good investment if you need "Financials" in your portfolio.
Sorry -- It's EARLY -- and I had a long drive yesterday -- Forgot my train of thought:
What I bought "the banks" for (I chose WFC) -- is the RETURN OF them paying dividends comparable to what they did before the big bank debacle. IF --- ALWAYS A BIG IF -- the government allows them to do that.... and if they return to profitability and WANT to do that -- then the price will/should rise -- giving a double whammy --- bigger dividend and capital growth.
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That's just it - if the FEDs green light BofAs capital plan then that $18 is attainable. Otherwise, looks like I'll be owning BAC for awhile.
This particular stock is just a hand of blackjack for me. Not really a portfolio stock at this stage.