I also find @nerdbull1669 ’s point about tangible book value important, especially when Treasury yields remain elevated. A bank may report solid profits, but hidden balance-sheet pressure and unrealised losses can still affect its long-term valuation.
As for Berkshire trimming $Bank of America(BAC)$ , I would treat it as a signal worth monitoring rather than an automatic reason to sell. I prefer to look at the bank’s fundamentals, valuation, and earnings outlook before making a decision. Ultimately, I want to invest in banks that can deliver sustainable earnings through different interest-rate environments, not just benefit from temporarily favourable conditions.
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- DouglasMalan·10-15TOPCapital ratios probably deserve equal weight here. In rate volatility, management risk appetite can matter just as much as NIM or tangible book.1Report