2 Warren Buffett Stocks to Buy Hand Over Fist in January

Warren Buffett's Investment Philosophy - Warren Buffett's investment strategy focuses on understanding a company's business and execution capabilities, and purchasing at a reasonable valuation [1] Bank of America (BAC) - Bank of America is a significant holding in Berkshire Hathaway's portfolio, making up 11.3% of its investments [4] - The bank has shown resilience and financial strength despite macroeconomic challenges [4] - Revenue and earnings per share are expected to reach $25.1 billion and$0.77, respectively, in Q4 2024, representing a 14.3% year-over-year revenue increase and a 133% earnings jump [2] - Customer deposits grew from $750 billion pre-pandemic to$940 billion by Q3 2024, with 360,000 net new checking accounts added in Q3, marking 23 consecutive quarters of growth [3] - Net interest income (NII) is projected to reach $14.3 billion in Q4 2024, following a trough in Q2 2024 and an inflection point in Q3 2024 [8] - The bank benefits from an uninverted yield curve and increased loan volumes in 2025, allowing it to borrow short-term and lend long-term [5] - Digitization efforts are strong, with 75$3.49, despite only a 6% year-over-year rise in billings [11] - The company raised its 2024 earnings guidance from $13.30-$13.80 to $13.75-$14.05 [12] - Credit quality is strong, with a 1.9% write-off rate in Q3 and a robust reserve rate of 2.9% [13] - Spending by millennial and Gen Z customers grew 12% year-over-year in Q3, with higher retention rates and expected double lifetime value compared to older generations [13] - A product refresh strategy has been successful, with 40 products refreshed globally by Q3 2024, including the U.S. Consumer Gold card, which saw 30% higher acquisitions than the Platinum Card [14] - The stock trades at just 3 times sales, making it an attractive buy given its premium customer base, loyal younger clientele, and strong business model [15]