Home Bancshares Inc


Here's Why Warren Buffett Is Buying Bank Stocks

I find it extremely interesting that at a time when the markets are sideways, and interest rates are falling, Warren Buffett is buying banks…

Berkshire Hathaway is now among the five largest shareholders at firms like Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and Goldman Sachs Inc. (NYSE: GS). Even credit card giant American Express Co. (NYSE: AXP) is a significant Buffett holding.

Right now, a lot of people are avoiding banks because of falling rates. But when you understand the broader trends, banking stocks are attractive, cheap, and have massive upside.

There are other major trends in the banking industry that you should know about.

I'll discuss those major trends and tap into the best bank stock to buy according to the Money Morning Stock VQScore™.



This Bank Stock Could Bring You 100% Gains (Conservatively)

If there's one thing I've learned throughout my more than 20 years in the markets, it's that with some companies, there's more to them than meets the eye.

This was especially the case with Home BancShares Inc. (Nasdaq: HOMB), a regional bank based out of Conway, Arkansas.

On a Friday afternoon back in summer 2016, I was wrapping up my work and heading out for my "ready for the weekend pizza and vino" run when I got an email from Home BancShares chairman John Allison.

Now, I had just published an article about banks that I thought were overvalued at the time based on the price-to-book-value ratio. Mr. Allison's company made the list, and he thought I was a little unfair in that regard.

Don't be mistaken: he didn't chew me out or anything. He's a stand-up guy who wanted to have a thoughtful conversation and provide me with his side of the story.

And let me tell you that if I had a bank, I would definitely want Allison as my CEO…

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Here's What My Two Favorite Bankers Think About Tax Reform

Last week, we talked about what the "too-big-to-fail" banks were saying on their earnings calls.

Now, investors have to know what these mega-banks are up to, because they're the 800-lb gorillas of the market, but I don't own a single one of those.

As I mentioned a couple of weeks ago, I like regional banks, because they offer what I like the most: unreasonably good returns.

Naturally, I never miss an earnings call from these guys.

Especially on the first earnings call after the biggest tax reform since 1986 has been passed.

Here's what happened...