Investing $1K in Warren Buffett’s Favorite Bank Stocks 10 Years Ago Would Have Netted This Much

1 hour ago 3

Trey Thoelcke

Tue, March 10, 2026 astatine 8:10 AM CDT 4 min read

Bank of America (BAC) returned +333.19% implicit 10 years with $30.5B 2025 nett income (+12.45%), trades astatine 12x earnings. American Express (AXP) returned +491.5% implicit 10 years astatine 19x earnings. S&P 500 (SPY) returned +234.52%.
Bank of America’s deposit basal and rising rates, positive American Express’s millennial paper growth, drove returns that bushed the S&P 500 implicit a decade.
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American Express (NYSE: AXP) and Bank of America (NYSE: BAC) are 2 of Warren Buffett's astir enduring fiscal bets. Both person been cornerstones of Berkshire Hathaway's portfolio for years, built connected his condemnation successful durable concern models, pricing power, and accordant superior returns. Holding either banal is truly a communicative of trusting that thesis done cycles.

Bank of America spent overmuch of the 2010s recovering from the fiscal crisis, rebuilding superior and cutting costs nether CEO Brian Moynihan. That patience paid disconnected arsenic involvement rates roseate and the bank's monolithic deposit basal became a structural advantage. Average deposits topped $2 trillion for the archetypal clip successful Q4 2025, and nett income reached $30.5 cardinal for full-year 2025, up 12.45% twelvemonth implicit year.

American Express leaned into its premium paper exemplary and younger cardholders. Gen Z and millennial cardholders present correspond 60% of caller paper acquisitions, and nett paper interest revenues person grown by treble digits for 30 consecutive quarters. The brand's pricing powerfulness has proven remarkably resilient.

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Bank of America

1-Year Return
- Initial Investment: $1,000
- Current Value: $1,183
- Total Return: +18.31%
- S&P 500 (same period): $1,178 (+17.77%)
5-Year Return
- Initial Investment: $1,000
- Current Value: $1,447
- Total Return: +44.73%
- S&P 500 (same period): $1,741 (+74.1%)
10-Year Return
- Initial Investment: $1,000
- Current Value: $4,332
- Total Return: +333.19%
- S&P 500 (same period): $3,345 (+234.52%)

American Express

1-Year Return
- Initial Investment: $1,000
- Current Value: $1,130
- Total Return: +12.99%
- S&P 500 (same period): $1,178 (+17.77%)
5-Year Return
- Initial Investment: $1,000
- Current Value: $2,211
- Total Return: +121.1%
- S&P 500 (same period): $1,741 (+74.1%)
10-Year Return
- Initial Investment: $1,000
- Current Value: $5,915
- Total Return: +491.5%
- S&P 500 (same period): $3,345 (+234.52%)

Note: figures bespeak terms instrumentality lone and exclude reinvested dividends, which would propulsion some totals higher, fixed each company's accordant dividend growth.

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