Warren Buffett increases his stake in Wells Fargo
A large slice of Warren Buffett's Berkshire Hathaway portfolio is dedicated to Wells Fargo (WF), and the love affair is not ending anytime soon. Recently, Buffett increased his stake in the mega bank even further. Seeking Alpha explains the investment's guru's interest:
Wells Fargo has at least two of the major ingredients required for the Warren Buffett investment, namely quality management and a simple uncomplicated business model. It has resisted the excesses of its banking peers such as complicated things like derivatives, and withdrew from sub-prime mortgage lending well before the bust. Inevitably, because of its size, it has its legal problems, but nothing on the scale of its contemporaries.