Billionaires Are Selling Bank of America Stock and Betting on This TSX Stock Instead

American bank stocks may not be doing so well in the near future, but this other one could be a strong option.

It’s always interesting to see what the big players in the investing world are up to. Recently, there’s been some buzz about Warren Buffett’s company, Berkshire Hathaway, making some changes to its investment mix.

In the last part of 2024, Berkshire decided to sell off a big chunk, almost three-quarters, of the shares it owned in Citigroup. It also trimmed down its holdings in Bank of America (NYSE: BAC) by a whopping 95 million shares! This has got a lot of people wondering where these super-wealthy investors might be planning to put their money next.

Middle aged man drinks coffee

Source: Getty Images

Moving that money to Canada

Amidst all this shifting around, there’s been a bit of a spotlight turning to the neighbours up north. Canadian banks, known for being pretty stable and not taking huge risks with lending, are starting to look more and more appealing to investors. And one bank in particular, Royal Bank of Canada (TSX: RY), is really standing out as a potential winner in all of this.

RBC is the biggest bank in Canada when you look at how much the whole company is worth on the stock market. It has a really diverse business, offering everything from regular banking for people and businesses to managing wealth, providing insurance, and dealing with capital markets.

As of writing, RBC’s stock is trading at around $158.82 per share. In its most recent earnings report for the first three months of 2025, RBC announced a net income of $4.3 billion. That’s a nice 6% increase compared to the year before! This growth was mainly thanks to strong performances in its personal and commercial banking areas, as well as its wealth management division.

A long-term hold

The appeal of Canadian banks like RBC is even stronger because of the current economic situation. With some uncertainty floating around about banks in the U.S., investors are looking for safer places to park their money that still have the potential to grow. RBC’s history of consistently paying dividends and its careful approach to managing risk make it a really attractive choice for those who want to spread out their investments and find some stability.

It’s also worth pointing out that RBC has been actively working on growing its reach. The bank has made some smart purchases and investments to strengthen its presence in important markets, both here in Canada and in other countries. This kind of forward-thinking strategy puts RBC in a good position to take advantage of new opportunities and handle any potential challenges that might pop up down the road.

For regular folks who are investing, watching what billionaire investors do can give us some helpful clues. While it’s always important to do your own homework before making any investment decisions, seeing where experienced investors are putting their money can give you a sense of broader trends in the market. The recent move away from some U.S. banks and the growing interest in Canadian banks like RBC suggests that maybe there’s a shift towards banking environments that are seen as more stable and reliable.

Bottom line

As the super-rich investors adjust their strategies, Canadian banks, especially the Royal Bank of Canada, are looking like pretty good alternatives. RBC’s strong financial results, its plans for future growth, and its reputation for being stable make it a standout option for anyone trying to navigate the ever-changing financial world. As always, if you’re thinking about investing, make sure you do your own thorough research and think about your own financial goals and how much risk you’re comfortable with.

Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Bank of America and Berkshire Hathaway. The Motley Fool has a disclosure policy.

More on Bank Stocks

data analyze research
Stocks for Beginners

Maxing Out Your TFSA Isn’t the Final Step: Here’s What Is

A full TFSA still needs a plan: protect near-term spending, diversify long-term holdings, and understand when withdrawals restore room.

Read more »

senior couple looks at investing statements
Bank Stocks

BMO Says Canadians Need $1.7 Million to Retire: Your Number Could Be Very Different

BMO says Canadians need $1.7 million to retire, but your number may differ. See how CPP and OAS cut the…

Read more »

Concept of rent, search, purchase real estate, REIT
Stocks for Beginners

On a Variable Mortgage? Markets Are Now Betting on Hikes, Not Cuts

A rate hike remains possible, even after weak jobs data. Here's the household cost and the separate CIBC investment decision.

Read more »

woman checks off all the boxes
Stocks for Beginners

Using Your TFSA as a Retirement Account: Pros and Cons

The TFSA is an excellent tool to help you save and invest for your retirement nest egg, but there are…

Read more »

Paper Canadian currency of various denominations
Stocks for Beginners

Your Broker Withholds 15% on U.S. Dividends: Here’s The Tax Credit That Gets It Back

U.S. dividend withholding depends on your account, while BMO shows how a Canadian stock can offer U.S. exposure.

Read more »

Hand Protecting Senior Couple
Stocks for Beginners

How Much Do You Actually Need to Retire in Canada?

The same retirement lifestyle can require very different savings balances once pensions and withdrawal taxes enter the calculation.

Read more »

An investor uses a tablet
Bank Stocks

Brokerage Account Basics: What Canadian Beginners Should Look For

New to investing in Canada? Learn to compare brokerage fees, pick a TFSA, RRSP or FHSA, and see why Royal…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Stocks for Beginners

Canada Lost 68,000 Jobs in September: The October 28 Rate Call Just Got Harder

September's job losses complicate the rate decision, while Scotiabank shows why borrowers' relief and bank earnings aren't the same thing.

Read more »