In this video, analysts Matt Koppenheffer and David Hanson talk about investing in bank stocks. Warren Buffett is a fan of the banking sector and has invested heavily in this industry.
Looking at Berkshire Hathaway's portfolio, David chooses American Express as his favorite banking stock. Even though it's not a bank, David says it has an upper hand over banks such as Wells Fargo. He sees great growth possibilities as well, mainly because of competitive pressure, and he believes that the company will be able to maintain its lead.
Matt, on the hand, chooses Goldman Sachs from Berkshire's banking portfolio. He focuses on Goldman's brand name, which is one of the factors that attract customers. He also points to Goldman's reputation in the industry, which allows it to attract only the best and brightest employees and gives it an edge over its competitors.
