CNBC Mad Money host Jim Cramer proved that the Warren Buffett effect is alive and kicking on Wednesday evening. The bombastic money manager cited billionaire Buffett's plans to increase his investment in Bank of America (NYSE: BAC) as one of a multitude of reasons to buy big banking stocks.
Cramer Backs Warren Buffett On BoA As US Consumer Remains Strong
It was headline-grabbing news on Tuesday when Bloomberg reported that Warren Buffett's Berkshire Hathaway was planning to increase its already sizeable stake in Bank of America. In a typical display of Buffett savvy, BoA earnings subsequently came in better than expected, just like rival JPMorgan Chase's did on Monday afternoon. This is an excellent indicator that the best refuge in the stock market from Trump's trade war may be in big bank stocks.