You don't earn the nickname "Oracle of Omaha" without doing some serious thinking along the way. Warren Buffett has studied businesses for decades. He's been highly successful doing so, amassing a multibillion-dollar fortune along the way.
With that kind of track record, it seems reasonable to expect that Buffett's portfolio includes some great ideas for investors who aren't billionaires. And it does. Here is no-brainer Buffett stock to buy right now.
Buffett has historically loved bank stocks. His favorite in the group, though, is without question Bank of America(BAC-2.25%). The big bank ranks asBerkshire's second-largest holding.
But you don't need to buy Bank of America shares just because Buffett likes it. There's a clear and compelling reason why investing in this stock makes sense right now -- rising interest rates.
Bank of America iswell-positioned to benefit from rising interest rates. The company's profitability should increase as the spread between the interest it charges on loans grows faster than the interest it pays on deposits. BofA's return on equity also correlates with the federal funds rate.
Even if interest rates weren't going up, though, I think Bank of America would be a solid Buffett stock to buy. The company's investments in technology continue to pay off. Some banks might find their businesses disrupted by fintech innovations, but Bank of America is likely to survive and thrive.
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