To The Moon

$Berkshire Hathaway(BRK.A)$ 

$Bank of America(BAC)$ 

This period banks are doing very well as stocks 

The three categories of banking businesses

Commercial banks: These are banks that provide services to consumers and businesses, including checking and savings accounts, auto loans, mortgages, and certificates of deposit. Commercial banks primarily make money by borrowing it at a relatively low interest rate and lending it to customers at a higher rate. Although commercial banks make the bulk of their money from interest income, many also collect substantial revenue from loan origination fees, ATM surcharges, and account maintenance fees. It's important for investors to note that commercial banking is a cyclical business. When recessions (and pandemics) hit, unemployment rises, and consumers and businesses often have trouble paying their bills.

Investment banks: These banks provide investment services for institutional clients and high-net-worth individuals. Investment banks earn fees by issuing debt securities, offering advice on mergers and acquisitions, and helping other companies go public through IPOs. Investment banks also make money from trading in equities, fixed-income securities, currencies, and commodities. They typically have wealth management businesses and often have substantial investment portfolios of their own. Unlike commercial banking, investment banking tends to hold up quite well during recessions. When markets get volatile, investment banking often does better.

Universal banks: A universal bank is one that has both commercial and investment banking operations. Most large U.S. banks are universal banks. Although commercial banks get the bulk of their profits from interest income and investment banks primarily rely on fee income, universal banks enjoy a nice combination of the two.