Investing in Bank of America Stock: Strategies for Long-Term Growth

If You'd Invested $1,000 in Bank of America 5 Years Ago, Here's How Much You'd Have Today

The answer might surprise you. Investing in the stock market has been an incredible vehicle for wealth-building for Americans for decades. Not all investments yield the same results, which is why for many investors, it makes sense to set aside a portion of your portfolio to invest in market-tracking index funds and exchange-traded funds (ETFs) and benefit from the market's overall rise.

One of Buffett's favorite stocks

Bank of America, or BofA, is the second-largest U.S. bank by assets and one of Warren Buffett's favorite stocks. It accounts for 10.1% of Berkshire Hathaway's equity portfolio, making it its second-largest position.

The big reveal

That leads up to the answer to the headline question, which might surprise investors. If you'd invested $1,000 in Bank of America (NYSE: BAC) stock five years, ago, you'd have $1,313 today, dividends included. That trails the S&P 500 by a wide margin.

Should you invest $1,000 in Bank of America right now?

Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Bank of America wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.