Hi YXI friends,

Bank of America has been a regular appearance on my X feed, but for the wrong reasons. Warren Buffett, a big shareholder of BAC since 2018, has exited the great majority of his holdings to now below 10% of the total shareholdings.

Should BAC shareholders panic at Buffett’s decision? Let’s find out.

To be perfectly clear, Buffett has not personally told me why he sold. However, we will be looking for the clues in the stocks’ recent fundamentals as well as price technicals.

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. BAC’s growth is in decline

Net Interest Income (NII)

Net Interest Income (NII) has been in a declining trend since Q4 2023, as BAC faced much interest rate expenses without being able to lift the interest rate income by as much after the Fed’s hiking cycle.

Quarterly Revenue

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