Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Buffett's Berkshire slashes Wells Fargo stake

Published 09/04/2020, 06:55 PM
Updated 09/04/2020, 10:55 PM
© Reuters. Berkshire Hathaway Chairman Warren Buffett seen at the annual Berkshire shareholder shopping day in Omaha

© Reuters. Berkshire Hathaway Chairman Warren Buffett seen at the annual Berkshire shareholder shopping day in Omaha

(Reuters) - Warren Buffett's Berkshire Hathaway Inc (N:BRKa) said on Friday it had cut its Wells Fargo & Co (N:WFC) stake to 3.3%, further reducing what had once been a $32 billion investment in the bank.

Berkshire said in a regulatory filing https:// it owned about 137.6 million shares, worth $3.4 billion, of the fourth-largest U.S. bank by assets, down about 100 million from the end of June.

Buffett began investing in Wells Fargo in 1989, but has been reducing Berkshire's stake as the bank struggles to recover from a series of scandals over its treatment of customers, including the opening of accounts without their knowledge.

Wells Fargo's ability to grow remains subject to a Federal Reserve limit. Moody's (NYSE:MCO) Investors Service on Wednesday lowered its rating outlook on the bank to "negative" from "stable", citing the bank's slower-than-expected ability to resolve governance and oversight issues from previous years.

Berkshire still owns shares of several other banks, including Bank of America Corp (N:BAC), which became its largest common stock holding other than iPhone-maker Apple Inc (O:AAPL).

© Reuters. Berkshire Hathaway Chairman Warren Buffett seen at the annual Berkshire shareholder shopping day in Omaha

Buffett's conglomerate also owns dozens of operating businesses including the BNSF railroad and Geico auto insurer.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.