5 Banks Warren Buffett

Should Buy (or buy more of)

Toronto-Dominion (TD) Bank

Toronto-Dominion Bank (TD)

• TD Bank’s competitive advantage is its unmatched convenience

• Most branches are open 7 days a week, and on holidays

• Drive-through services are open until midnight in many locations

Goldman Sachs (GS)

Goldman Sachs (GS)

• Goldman Sachs has the advantage of being able to recruit the best talent on Wall Street

• Warren Buffett himself referred to an investment in Goldman as a “bet on brains”

• Buffett bought Goldman warrants at the height of the financial crisis, resulting in a 2.8% stake in the company

State Street Bank (STT)

State Street (STT)

• The lowest level of nonperforming loans and assets of any bank

• Effective 0% rate of loan delinquencies

BB&T Corp (BBT)

BB&T Corp (BBT)

• BB&T’s insurance business has one of the fastest growth rates in the sector, up 15% from last quarter

• Unlike many other large banks, BB&T has lots of room for growth, with a relatively small geographic footprint

• Management has expressed interest in expanding in Texas, Tennessee, Georgia, and Maryland

Prosperity Bank (PB)

Prosperity Bancshares (PB)

• Named America’s Best Bank by Forbes Magazine

• 0.1% of Prosperity’s loans are nonperforming

• Prosperity has more than 11 times the value of their nonperforming loans in reserves

Warren Buffet Just

Bought 9 Million Shares