Bank stocks are one of the safer investments you can make, at least according to noted bank stockholder Warren Buffet. Buffet has long been known as a fan of investing in banks; his holding company, Berkshire Hathaway, has long held a large position in Bank of America, and last year snapped up a significant amount of shares in JPMorgan Chase. (Of course, some of his bank boosterism in the past left him with a bit of egg on his face.)
But, by and large, bank stocks have served the Oracle of Omaha well. In a recent Yahoo Finance interview, he doubled down on that position, saying “They’re a business I understand, and I like the price at which they're selling relative to their future prospects. I think ten years from now, that they’ll be worth more money. And I feel there’s a very high probability I’m right.”
In ten years, if both we and Warren are still around, we’ll know if he was right.