Wells Fargo & Co (NYSE:WFC) found itself with a bit of upside earlier this week, perhaps as some of the glowing comments made by Warren Buffett at the Berkshire Hathaway Inc. (NYSE:BRK.B) annual meeting regarding the big bank sunk in around Tuesday and Wednesday. Giving the entire banking sector a thumbs up, the Oracle of Omaha also noted that, “I feel very good about our investment in Wells Fargo.”
It’s difficult to get a better boost than that, and the entire sector got another lift when Bank of America Corp (NYSE:BAC) and monoline insurer MBIA Inc. (NYSE:MBI) penned a long-awaited settlement, a legal muddle that had been ensnaring both for some time. Even JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon’s problems with regulators and shareholders didn’t put much of a ding in that bank’s share price — though Dimon may have Buffett to thank for that, as well.
But then, the axe fell. Things got a little hairy as the New York Attorney General announced that both Bank of America and Wells are in mortgage-related trouble again, which doubtless weighed down both banks’ shares yesterday.
This isn’t good news for either bank, though Bank of America Corp (NYSE:BAC) will probably feel the ire of investors more than Wells, simply because of the vast array of lawsuits constantly cropping up regarding Countrywide’s stable of smoldering loans.
Truly, Wells Fargo & Co (NYSE:WFC)’ stock price drop was more likely attributable to the fact that the stock went ex-dividend on Wednesday, a temporary situation. And after that nice $0.30 payout, most investors are probably not complaining.
Less than an hour into the trading day, Wells is up more than 20%. Another down day for Wells Fargo & Co (NYSE:WFC)? I think not.
All that being said, it really doesn’t matter much how Wells Fargo & Co (NYSE:WFC)’s stock behaves today — or on any given day, for that matter. As Foolish investors well know, a snapshot look at any given stock, taken in isolation, can be detrimental to the long-term view. The big picture, as always, is what really matters, and the normal ups and downs of the market are something that investors with their eyes on the prize take into consideration, knowing that these hills and valleys are just part of the business of intelligent, long-term investing.
The article Watch Wells Fargo Rise From the Ashes Today originally appeared on Fool.com and is written by Amanda Alix.
Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and Wells Fargo. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, JPMorgan Chase, and Wells Fargo.
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