It’s not hard to understand why Warren Buffett is such a big fan of Bank of America CEO Brian Moynihan. These two statements from Moynihan’s letter to shareholders show just how far the company has come over the past decade or so:
Credit Quality: “[T]he total cumulative charge-offs at Bank of America from 2015 to 2022 reflecting Responsible Growth were less than the charge-offs recorded in the single year 2010 despite a recession, a pandemic, unprecedented monetary policy changes, and war occurring in these years.”
Consistent High-Earning Company Now: “[O]nly four U.S. companies have earned more than $15 billion in GAAP after-tax income in each of these eight years. Your company is one of them.”
Moynihan became CEO in 2010, when BofA was an absolute mess; the company today has become a much, much better-run business since then.