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.
Buffets banks
- Thread starter Free bird
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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.
james7
Recycles dryer sheets
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.
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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Mr. Tightwad
Thinks s/he gets paid by the post
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.
bobandsherry
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Um, not $3 a decade ago for sure. More like 25 years ago. And Buffett bought WFC more recently than a decade ago.
https://www.macrotrends.net/stocks/charts/WFC/wells-fargo/stock-price-history
Mr. Tightwad
Thinks s/he gets paid by the post
I was recalling from memory...I thought the low for BOA was 1$ and WFC was 3$ back during the financial crisis. Its been 10 years, might have been off.
james7
Recycles dryer sheets
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.
Luck_Club
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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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