Berkshire Hathaway (BRKb ) has been cutting back on Wells Fargo, disclosing Friday that it sold 85.6 million shares in the second quarter to lower its investment by about 25% to 237.6 million shares.
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And he bought a metric fk ton of gold.
It means the banks are gonna get k–led cause the economy is on life support from the fed.
If you own wfc in 401k its a good idea to follow ole uncle warren and sell it all while you can.
Wells Fargo is about to face wave after wave of labor law litigation from workers.
It will be a miracle if this bank remains solvent by 2022.
Sorry to point this out, but regarding Charles in Charge buying $5M worth of Wells Fargo stock in March of this year: it reminds me of Bob Steele and Wachovia. In July of 2008, Bob Steele became the new CEO of Wachovia Bank. In the same month he bought $16M worth of Wachovia stock to show confidence in the bank. He paid between $14 and $17 per share. Just 3 months later, in Oct 2008, stock was trading below $1 per share and we were bought out/bailed out at a bargain basement price by Wells Fargo. Good times! 5
Charlie could not have predicted the pandemic. We have to give him that. That does not, however, mean that we cannot take a moment to enjoy the fact that his timing s—ed.
That just shows how wrong he was. He was trying to exude faith and wound up being even more wrong. If anything that should be more worrying.
The rot in this company goes much deeper than stressed employees opening fake accounts to make unattainable numbers. That becomes more apparent every day.
When the scandals first broke Buffet’s attitude was much different. Now he’s throwing in the towel. I’m not one who considers him infallible, but still it says a lot.
No doubt the stock price dive is painful, but there's the contrarian argument to hang on and ride this out. Remember CEO Charlie bought $5M worth of shares back on 3/13 right before market tanked– he's going to do everything he can to juice the WFC stock price back up.
https://www.cnbc.com/video/2020/02/24/buffett-wells-fargo-shareholders-would-be-a-lot-better-off-if-it-addressed-problems-sooner.html
Nobody should be holding WFC after the 2Q Chainsaw gave us. He was supposed to improve our bottom line, not utterly fail on it. There's plenty of Wall St. Commentary about just how horribly he mismanaged 2Q. Expect more institutional investors to pull out of WFC.
Thanks to him WF will be cutting even more staff than predicted.
I rebalance the ESOP stock in my 401(k) to zero each quarter. Anyone who works here ought to do the same so your retirement doesn't go down with the bank and your job.