Last year, buying the dip has already earned $1.9 billion! Can we still buy Bank of America, which Warren Buffett loves?

On Thursday, October 14th, bank of america announced better-than-expected performance - Q3 revenue of $22.87 billion, net income increased by 58% year-on-year to $7.7 billion. After the financial report was released, the stock price of bank of america rose for two consecutive days by about 7.5%, and closed at $46.37 on Friday, reaching a new all-time high. bank of america's stock price has risen by over 55% so far this year.

It is worth mentioning that bank of america is one of Buffett's long-term heavy holdings. Currently, Berkshire Hathaway holds 12% of bank of america's stocks, making it the largest shareholder of bank of america.

From late July to early August 2020, Buffett increased his holdings of bank of america stocks for three consecutive weeks, spending $2.07 billion, with an average price of around $24.35. Now, the value of these stocks has nearly doubled - the approximately 85 million shares of bank of america stock purchased by Berkshire Hathaway last year are now worth $3.9 billion, an increase of $1.9 billion in 14 months.

Last summer, when Buffett heavily invested in bank of america, there were still many voices of doubt in the market. And now Buffett once again proves to the market that 'the old saying goes - the old are the sharpest'!

Berkshire Hathaway currently holds 1 billion shares of bank of america stock, valued at over $46 billion at the current stock price. Berkshire Hathaway's latest annual report shows that its holding cost is less than $15 billion, indicating that Berkshire Hathaway has realized a floating profit of over $30 billion on bank of america.

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