Please be inclusive and welcoming to everyone, regardless of their background, experience, or opinions.
- Manlobbi
Halls of Shrewd'm / US Policy
No. of Recommendations: 1
After the recent daily journal 13F update I noticed BOA is also the biggest holding @ 40% still as well as BRKs second largest.
What's the moat and long term buy and hold argument? I can't figure it out.
No. of Recommendations: 6
No. of Recommendations: 4
Moat- 'Wide' (Morningstar)
+ 2nd Largest U.S. Bank
+ Considered to be a Globally Systemic Important Bank
+ Economies of Scale - thru product breadth and its ability to bundle creating switching costs
+ Top issuer of credit and debit cards
+ Dominant wealth managers in the U.S. through its multiple Merrill Lynch platforms (enabling one-stop banking and investment shop)
+ Current Px/Bk .91
+ Current P/E 8.7
+ 52 wk trading range 26.32 - 40.40
+ Berkshire is Largest Stockholder
Suggest you check out Morningstar BAC Stock Analysis
GLTA,
Silverlinin
No. of Recommendations: 1
Thanks for the Morningstar reminder, I'd forgotten about their MOAT ratings. Wells Fargo and JPM still on the "wide moat" list.
No. of Recommendations: 1
Just a thought, FWIW:
Sell May 19 2023 puts, strike 24 (roughly 14% OTM), bid 0.35 ask 0.37
(0.35/(24-0.35))*365/39 = 0.1385, or 13.85% roughly annualized.
Two outcomes:
(1) You make 13.85% or so annualized on this trade, and perhaps on future trades if things continue roughly the same. Not bad in present climate.
(2) You end up owning BAC at a lower price point. Could sell it and keep writing puts, presumably it's not about to go bust. Or if assigned, you could keep the stock that was bought at a discount.
The adage is "Only sell puts on stocks you wouldn't mind owning".
No. of Recommendations: 1
In my ira , last Month I sold the March 17, Bac 30 put for 1.50. It was put to me , hence my cost basis 28.5. I sold the June 30 call for 1.5, my cost now 27, we shall see?
