1 Reason I Will Never Sell Bank of America Stock
Key Points
I bought shares of Bank of America in the wake of the financial crisis.
The bank’s post-crisis turnaround has been exceptional, thanks to strong leadership.
Bank of America has been quietly building a technology advantage for years.
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During the financial crisis, Bank of America (NYSE: BAC) got absolutely hammered. In fact, there were times when industry experts questioned whether the bank would survive. After all, several century-old financial institutions that were thought to be bulletproof ended up closing their doors forever, and Bank of America had an abundance of questionable assets.
However, the bank quickly began taking steps to recover under its new CEO, Brian Moynihan. Several investors, including Warren Buffett, saw value in the beaten-down bank stock and decided to buy shares -- and I did as well, accumulating a position in 2012 and 2013. I still own it today and haven't sold a share.
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Why I'll never sell Bank of America
First, let me clarify what I mean by "never sell." I don't literally mean that, no matter what, I'll hold Bank of America shares for the rest of my life. I simply mean that given the bank's progress over the 14 years I've owned the bank stock, I can't see any scenario that would make me want to hit the sell button anytime soon.
Second, there are many reasons I like Bank of America stock. The bank's leadership -- especially Moynihan -- is a big part of the investment thesis, just to name one thing. Plus, the bank has done a great job of growing its deposit base and loan portfolio faster than most peers, and of maintaining fantastic asset quality.
However, there's one big reason why I'm such a fan of Bank of America, and it's one that many investors overlook -- technology.
Bank of America's technology advantage
Although many investors don't put Bank of America in the same category as fintechs like SoFi (NASDAQ: SOFI) and Robinhood (NASDAQ: HOOD) when it comes to technology, I'd argue that they should.
During his tenure as CEO, in addition to dramatically improving the bank's asset quality and setting it up for long-term success, Moynihan has been quietly turning Bank of America into a technology leader. In fact, over the past 10 years, Bank of America has invested more than $100 billion to build out its technology capabilities, including $13 billion last year alone. As Moynihan said at the bank's investor day in late 2025, he views technology as a strategic enabler that gives Bank of America a big competitive advantage.
This includes investment in AI. The bank has about 1,400 AI patents and has deployed over 250 AI and machine learning models.
Today, more than 70% of Bank of America's sales take place through digital channels, and the bank's tech has made the business far more efficient. In fact, employee headcount in its consumer segment has been reduced by nearly 50% since 2011, despite massive growth in deposits and transactions in that period.
Bank of America has an early mover advantage in AI and other technologies, especially among the big banks. With AI rapidly evolving, this should give the bank an increasing efficiency advantage over the next several years. That's why I don't plan to sell.
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Bank of America is an advertising partner of Motley Fool Money. Matt Frankel, CFP has positions in Bank of America and SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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