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Buffets banks
Old 12-04-2018, 06:53 PM   #1
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Buffets banks

Read the Oracle has a 42% weighting in banks. Eclipsing the much reported Apple holding. He also holds a large amount of cash. He views the banks as an oligopoly. A step down from a monopoly I guess. But the same as a cartel only less players. Banks still sporting an attractive valuation in his mind. Article says buy the XLF if you want to be like Warren without buying berkshire stock. He stays under radar with <10% on each bank.
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Old 12-04-2018, 08:02 PM   #2
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There's a lot of banks he doesn't own. Wonder how he chooses them.
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Old 12-04-2018, 08:03 PM   #3
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He owns the big ones.
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Old 12-04-2018, 08:06 PM   #4
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He owns the big ones.
I don't believe he owns any JPM or Citibank. I know he owns a lot of Wells Fargo, BofA and US Bank.
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Old 12-04-2018, 08:08 PM   #5
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The article was on seeking alpha I believe. Sounds like JPM is on his to do list.
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Old 12-04-2018, 08:16 PM   #6
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Says he bought JPM last quarter.
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Old 12-04-2018, 10:48 PM   #7
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I believe the first one he bought was USBank. Several times he has made statements to the effect that he thinks it is the best run bank in the country.

As for Wells, I'd be surprised if he made a single cent on it so far. I don't think he counted on their executives being a bunch of liars and ripoff artists.

The article telling one to buy the XLF just because Buffet bought a couple of banks is pretty poor advice. He isn't just buying a bunch of banks; he is picking what he considers to be the best. What is odd is that over 13% of the XLF is in Berkshire.
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Old 12-04-2018, 10:59 PM   #8
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After 2008 why would anyone be surprised?
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Old 12-04-2018, 11:07 PM   #9
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Of course banks acting badly isn't anything new. XLF is trailing the S&P index. So Buffet is a value investor. It will no doubt pay off 5 years from now.
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Old 12-05-2018, 12:38 AM   #10
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I believe the first one he bought was USBank. Several times he has made statements to the effect that he thinks it is the best run bank in the country.

As for Wells, I'd be surprised if he made a single cent on it so far. I don't think he counted on their executives being a bunch of liars and ripoff artists.

The article telling one to buy the XLF just because Buffet bought a couple of banks is pretty poor advice. He isn't just buying a bunch of banks; he is picking what he considers to be the best. What is odd is that over 13% of the XLF is in Berkshire.
I bet he's a made a bundle on Wells Fargo..it was 3$ or so a decade ago. I bought it at 26.50 and I'm glad I did.
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Old 12-05-2018, 12:17 PM   #11
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I bet he's a made a bundle on Wells Fargo..it was 3$ or so a decade ago. I bought it at 26.50 and I'm glad I did.
Um, not $3 a decade ago for sure. More like 25 years ago. And Buffett bought WFC more recently than a decade ago.

https://www.macrotrends.net/stocks/c...-price-history
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Old 12-05-2018, 02:05 PM   #12
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Um, not $3 a decade ago for sure. More like 25 years ago. And Buffett bought WFC more recently than a decade ago.

https://www.macrotrends.net/stocks/c...-price-history
I was recalling from memory...I thought the low for BOA was 1$ and WFC was 3$ back during the financial crisis. Its been 10 years, might have been off.
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Old 12-05-2018, 05:23 PM   #13
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So if you buy XLF you get the big banks Buffet owns plus BRK.b for diversification.
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Old 12-05-2018, 06:19 PM   #14
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So if you buy XLF you get the big banks Buffet owns plus BRK.b for diversification.
Yes, and you will also get a lot of other banks that Buffett did not buy. I would rather buy the banks that Buffett picks, as he seems to know how to pick stocks, and some BRK, and not get all of those other banks in XLF that Buffett didn't pick.
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Old 12-05-2018, 06:31 PM   #15
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I don't believe he owns any JPM or Citibank. I know he owns a lot of Wells Fargo, BofA and US Bank.
Interesting that he holds BOA. I have recently started banking with them, fro travel purposes. I don't like the general set up but the link with Merril Edge is quite enticing.
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Old 12-05-2018, 06:39 PM   #16
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Of course he advocates owning the S&P 500 index. So even he's conflicted about stock picking. So I guess he's a closet Bogllite. I guess either way works.
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