Did Bank of America Just Prove Everyone Right?

Does Bank of America's latest mistake prove that no one can understand banks.

Apr 29, 2014 at 12:34PM

Bank Of America

Many investors believe it's impossible to understand and value a bank like Bank of America. When Bank of America disclosed on Monday that it had found an error in its internal accounting practices, the argument of the bank being a "black box" seemingly grew stronger.

In the following episode of Where the Money Is, banking analysts Matt Koppenheffer and David Hanson bust the myth that says investors should "sell in May and go away," dive into Bank of America's latest issue, and try to stump each other's investing knowledge in a round of "Stock Quiz." Matt believes the mistake at Bank of America says as much about the Federal Reserve and its stress testing methods as it does about Bank of America's inability to correct account for its assets and liabilities. Is the latest mistake a reason for banking "bulls" to finally admit that banks are too complex to be winning investments?

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David Hanson owns shares of Berkshire Hathaway, JPMorgan Chase, and PNC Financial Services. Matt Koppenheffer owns shares of Bank of America, Berkshire Hathaway, Citigroup, JPMorgan Chase, Morgan Stanley, and PNC Financial Services. The Motley Fool recommends Bank of America, Berkshire Hathaway, Coca-Cola, Starbucks, and Wells Fargo. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, Citigroup, Coca-Cola, JPMorgan Chase, PNC Financial Services, Starbucks, and Wells Fargo and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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