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Bank of America (BAC) returned +333.19% over 10 years with $30.5B 2025 net income (+12.45%), trades at 12x earnings. American Express (AXP) returned +491.5% over 10 years at 19x earnings. S&P 500 (SPY) returned +234.52%.
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Bank of America’s deposit base and rising rates, plus American Express’s millennial card growth, drove returns that beat the S&P 500 over a decade.
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American Express (NYSE: AXP) and Bank of America (NYSE: BAC) are two of Warren Buffett’s most enduring financial bets. Both have been cornerstones of Berkshire Hathaway’s portfolio for years, built on his conviction in durable business models, pricing power, and consistent capital returns. Holding either stock is really a story of trusting that thesis through cycles.
Bank of America spent much of the 2010s recovering from the financial crisis, rebuilding capital and cutting costs under CEO Brian Moynihan. That patience paid off as interest rates rose and the bank’s massive deposit base became a structural advantage. Average deposits topped $2 trillion for the first time in Q4 2025, and net income reached $30.5 billion for full-year 2025, up 12.45% year over year.
American Express leaned into its premium card model and younger cardholders. Gen Z and millennial cardholders now represent 60% of new card acquisitions, and net card fee revenues have grown by double digits for 30 consecutive quarters. The brand’s pricing power has proven remarkably resilient.
READ: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
Bank of America
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1-Year Return
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Initial Investment: $1,000
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Current Value: $1,183
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Total Return: +18.31%
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S&P 500 (same period): $1,178 (+17.77%)
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5-Year Return
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Initial Investment: $1,000
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Current Value: $1,447
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Total Return: +44.73%
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S&P 500 (same period): $1,741 (+74.1%)
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10-Year Return
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Initial Investment: $1,000
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Current Value: $4,332
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Total Return: +333.19%
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S&P 500 (same period): $3,345 (+234.52%)
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American Express
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1-Year Return
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Initial Investment: $1,000
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Current Value: $1,130
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Total Return: +12.99%
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S&P 500 (same period): $1,178 (+17.77%)
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5-Year Return
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Initial Investment: $1,000
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Current Value: $2,211
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Total Return: +121.1%
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S&P 500 (same period): $1,741 (+74.1%)
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10-Year Return
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Initial Investment: $1,000
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Current Value: $5,915
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Total Return: +491.5%
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S&P 500 (same period): $3,345 (+234.52%)
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Note: figures reflect price return only and exclude reinvested dividends, which would push both totals higher, given each company’s consistent dividend growth.
