Bank of America: Buy, Sell, or Hold?

In the third quarter alone, Warren Buffett and his team at Berkshire Hathaway have offloaded a staggering 235 million shares of Bank of America (NYSE: BAC). The conglomerate's share sales were notable, as Berkshire's previous stake was more than 10%, which required public disclosure via Form 4 to the Securities and Exchange Commission (SEC) every time it made a sale.Rising interest rates in recent years have taken a toll on Bank of America's bond portfolio, and it currently sits on $89.4 billion in unrealized losses. However, with interest rates expected to fall over the next year, Bank of America stands to benefit. If you're thinking of investing in the bank or currently hold the stock, consider the following.Investing in banks can be complex, especially with fluctuating interest rates. That's because banks borrow money short term, primarily through customer deposits, and lend out that money long term. As a result, a bank's profitability hinges on the difference between the interest earned on loans and the interest paid on deposits, making banks' cyclical stocks sensitive to interest rate changes.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool