Bank of America quietly echoes Warren Buffett’s favorite strategy

Group 1 - The current market is experiencing high volatility, with AI stocks attracting many first-time investors, leading to discussions about a potential bubble [1] - Warren Buffett's investment philosophy emphasizes patience and a long-term perspective, achieving approximately 20% annual compounded shareholder wealth, significantly outperforming the S&P 500 [2] - Bank of America is shifting its focus towards value stocks, suggesting that the market is showing signs of froth and advising investors to adopt a Buffett-style approach [4][5] Group 2 - Bank of America's latest report indicates that small-cap value strategies underperformed in Q3 but are expected to rebound due to positive market signals [6] - The U.S. Regime Indicator has moved to Recovery, a phase where value stocks typically lead within small caps, and value has started to outperform in mid caps [6] - The bank notes that recent small-cap gains have not come from high-quality growth stocks, which have lagged, indicating that the rally in weaker stocks may be losing momentum [7]