Bank of America's Big Mistake

Bank of America's $4 billion mistake just cost investors their dividend increase and share repurchases. Plus, why Coach got hammered today, competitive battles in telecom, Merck's earnings beat, and two stocks to watch today.

Apr 29, 2014 at 6:31PM

After initially passing the Federal Reserve's recent round of stress tests and being granted the ability to raise its dividend and initiate a share repurchasing program, Bank of America has now notified the Fed that it mistakenly reported $4 billion in additional capital. The bank will now be forced to suspend its planned increases to shareholder distributions.

On Tuesday's Investor Beat, host Alison Southwick and Motley Fool analysts Mike Olsen and Brendan Mathews take a look at how an error of this size could have happened, and just how badly this could damage both the credibility of the bank, as well as the credibility of the Fed's stress tests. Mike also mentions that this demonstrates just how many unknowns there truly are for investors in banks of this size.

Later in the show, Mike and Brendan each pick one stock they've got a close eye on right now. Mike looks at a company with large  the market share and barriers to entry for competitors to this knee and hip replacement company. Meanwhile, Brendan takes a look a payments company, and says he'll be looking very carefully at consumer-to-consumer transaction volume when the company reports earnings Thursday. If people are continuing to use the service, he could see the stock as very cheap today.

Big banking's little $20.8 trillion secret
There's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banks. That's bad for them, but great for investors. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.

Alison Southwick owns shares of AT&T.; Brendan Mathews has no position in any stocks mentioned. Michael Olsen, CFA has no position in any stocks mentioned. The Motley Fool recommends Bank of America, Coach, and Western Union. The Motley Fool owns shares of Bank of America, Coach, JPMorgan Chase, and Zimmer Holdings. 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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