Buffet Bullish on Big Banks

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.