3 Reasons to Buy Bank of America Today


The following video is part of our "Motley Fool Conversations" series, in which financial and economics sector head Ilan Moscovitz and consumer-goods editor and analyst Austin Smith discuss topics around the investing world.

As part of our series "3 Reasons to Buy/Sell," Ilan explains the bull case for Bank of America. Wall Street's most beleaguered "too big to fail" bank may be in the midst of a turnaround. The economy is getting better, unemployment is declining, and credit quality is improving -- all of which have a meaningful impact on a company with more than $600 billion in residential and consumer loans. If these trends continue, and there aren't too many surprises tucked away on B of A's balance sheet, 0.6 times tangible book value could turn out in hindsight to have been a bargain price.

The financial heavies are getting a lot of press these days. And much of it is negative. But there's one small bank that's flying under the radar, and it has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Warren Buffett would probably be interested in if he could still invest in small banks, just click here.

At the time thisarticle was published Austin Smith and Ilan Moscovitz have no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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