Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Wells Fargo & Co (WFC): A Look Back at The Bank’s Earnings History

Page 1 of 6

Very few Wells Fargo & Co (NYSE:WFC) shareholders are bearish on the stock’s long-term outlook, at least partially because the largest shareholder of Wells Fargo as a percentage of their 13F portfolio has been Warren Buffett, with 19.96% (over $15 billion) as of 12/31/2012 according to Insider Monkey. Buffett continues to believe in Wells Fargo and has actually increased his holdings by 4% compared to the previous quarter which I think is reckless, but maybe that is exactly the reason why he owns Wells Fargo and I write about Wells Fargo.

Warren Buffett portrait

Theleme Partners manages over a cool billion, and is even more enthusiastic than Warren Buffett, having increased their Wells Fargo & Co (NYSE:WFC) holdings by 8% last quarter. The hedge fund is now 23.21% invested in Wells Fargo. Its second largest holding is American Express (NYSE:AXP), with a more reasonable 10.77%.

Stifel Nicolaus (NYSE:SF) has wanted you to buy Wells Fargo since 02/10/2013, and they believe the stock price will increase to $42, but with a 0% increase in sales, that seems a bit hard to accomplish. It is time to buy a small bank in a country not currently served by Wells Fargo and use its expertise, experience and big pockets to eat Citigroup Inc (NYSE:C)’s lunch.

I do not ask for much, just a small bank with annual sales of at least $200 million. The revenue estimates for 2Q 2013 are growing to $21.4 billion from $21.3 billion a year ago. However, last year they managed to disappoint shareholders.

There must be a cheap bank that issues credit cards to consumers in Pakistan, Romania, Turkey, Paraguay and Uruguay which Citigroup is leaving because it cannot make enough money in those markets.

Wells Fargo & Co (NYSE:WFC) does not need to make money in those markets, but let’s reduce earnings estimates for Q3 2013 to $0.93 and focus on long-term growth. This being said, we can do this instead of trying to please the financial analysts in the short-term with a $0.13 gain from a year ago.

Shareholders only need one extra penny each year.

What are they going to do? Sell Wells Fargo?

Only 9 companies in the world are more important than Wells Fargo according to Forbes and only 6 of them make more money than Wells Fargo & Co (NYSE:WFC). It is a lot easier to convince a retired basketball high school teacher to open a brokerage account in Saudi Arabia than in Mexico, but why compete against 61 banks in Saudi Arabia when you can compete against 6 banks in Mexico?

We’d like to present the revenues and earnings of the last four quarters in a simple manner, to help you decide if you should buy more shares or sell your current holdings of Wells Fargo & Co (NYSE:WFC).

(Data via WSJ/Dow Jones & Co.)

Let’s take look at the list.

Page 1 of 6

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!