Wells Fargo & Company (WFC) Gets More Support from Warren Buffett

Warren Buffett, the “Oracle of Omaha” and CEO of Berkshire Hathaway, grabbed a larger stake in Wells Fargo & Company (NYSE:WFC) while unceremoniously breaking up with Intel Corporation (NASDAQ:INTC), according to the hedge fund’s quarterly filing with the SEC Tuesday.

Warren Buffett

Though Wells Fargo & Company (NYSE:WFC) has less than global exposure and reach than competitors like Citigroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC), it has been a favorite investment play for Buffett’s Berkshire hedge fund for more than 20 years. In Berkshire’s filing, it revealed that the hedge fund had increased its position in Wells Fargo by 4.2 percent during the second quarter of 2012, to a total of 411 million shares with a value of about $14 billion. Overall, Berkshire owns just shy of 8 percent of the bank’s shares. Since the start of the year, Berkshire has added 10.6 million shares to its position and about 104 million since early 2009.

Essentially, to make room for the additional Wells Fargo & Company (NYSE:WFC) shares, Berkshire dumped all 7.7 million shares it held in Intel Corporation (NASDAQ:INTC) during the most recent quarter, according to the SEC filing.

Why does Buffett like the bank so much? One San Francisco banking reporter put it this way in a blog post: “(Buffett is) a big fan of the bank’s low cost of funds gathered in checking and savings accounts that pay little or no interest. That’s a huge advantage in the business of lending money. And those low-cost deposits will be a more valuable advantage when interest rates rise, allowing the bank to make a bigger spread between what it pays on deposits and earns on loans.”

Berkshire’s stake in Intel Corporation (NASDAQ:INTC) constituted less than 0.5 percent of the total portfolio, while the added Wells Fargo & Company (NYSE:WFC) shares increases that stake to nearly 20 percent of the entire portfolio. Check out Buffett’s top stock picks.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!