I Prefer Bank of America Over Citigroup After Berkshire Hathaway Divestitures

(9min)

Summary

  • Berkshire Hathaway’s 13F filing disclosed continued divestitures in Bank of America and Citigroup stocks in Q1 2025.
  • After examining trends of recent delinquency rates and ongoing macro risks, I see good reasons for BRK’s divestitures.
  • During uncertain times, I like banks with better ROE and lower leverage.
  • As such, I feel BAC's valuation premium relative to C is warranted by its consistently higher ROE and more conservative balance sheet.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »
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BAC and C Stock: Warren Buffett Kept Selling in Q1

I last covered Bank of America Corporation (NYSE:BAC) back in November 2024. That article was titled "Bank of America And JPMorgan Chase: Deregulation Tailwinds Ahead”. The article rated BAC as a

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This article was written by

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Envision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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