Investing $1K in Warren Buffett’s Favorite Bank Stocks 10 Years Ago Would Have Netted This Much

Core Insights - American Express and Bank of America are significant investments for Warren Buffett, reflecting his belief in their strong business models and consistent returns [2] - Both companies have demonstrated resilience and growth, with Bank of America benefiting from rising interest rates and a large deposit base, while American Express has focused on attracting younger cardholders [3][4] Bank of America - Bank of America has recovered from the financial crisis, with a net income of $30.5 billion in 2025, marking a 12.45% increase year over year [3] - The bank's average deposits exceeded $2 trillion for the first time in Q4 2025, providing a structural advantage [3] - Over the past decade, Bank of America has returned +333.19%, trading at 12 times earnings [5] American Express - American Express has successfully targeted younger demographics, with Gen Z and millennials making up 60% of new card acquisitions [4] - The company has seen net card fee revenues grow by double digits for 30 consecutive quarters, showcasing its pricing power [4] - Over the last ten years, American Express has returned +491.5%, trading at 19 times earnings [5] Comparative Performance - Both companies outperformed the S&P 500 over the last decade, with Bank of America and American Express returning +333.19% and +491.5% respectively, compared to the S&P 500's +234.52% [5] - In the last year, a $1,000 investment in Bank of America would be worth $1,130 (+12.99%), while the same investment in American Express would be worth $1,183 (+18.31%) [6][9]