Bank of New York Mellon
That other bank, of course, is Bank of New York Mellon (BK), a $26 billion financial services stock that doesn't have the same household name status that Wells Fargo does. And that's for good reason.
BNY Mellon built its business around serving other financial firms' back office needs, building itself as one of the biggest asset custodians in the industry, and establishing a big presence as an asset manager. That means that BNY Mellon isn't interested in writing you a mortgage, but it is very interested in keeping an eye on your other accounts in exchange for fees. Those fee-based businesses are attractive because they don't come with the potential balance sheet black holes that traditional risk-taking banks do.With a quiet stock rally going in full force as we enter the Fall, BNY should see its custody accounts start to swell when investors start to realize what's going on. And with hefty net profit margins from fees, it should be able to pass even more cash onto investors through a 2.3% dividend yield that's going to be subject to less regulatory scrutiny than WFC's. Berkshire agrees. The firm bought 13.11 million shares of BNY Mellon in the past quarter, tripling its position in the firm and piling its position to nearly half-a-billion dollars. If you have to pick between one of BRK's banks, I'd suggest going with BK. To see the rest of Warren Buffett's plays - including a complete list of which stocks he added or sold off, check out the Warren Buffett Portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV