HomeServices Lending LLC announced that it will become a wholly owned subsidiary of HomeServices of America, an affiliate of Berkshire Hathaway Inc. (NYSE:BRK.B). HomeServices Lending is the biggest of the remaining joint ventures, accounting for $3.5 billion to $4 billion of loan production each year. According to the announcement, the new entity may continue to have dealings with Wells Fargo & Co (NYSE:WFC) in the future.
Considering the fondness Warren Buffett has for Wells Fargo & Co (NYSE:WFC), a future relationship is quite possible. Undoubtedly, the bank’s ability to predict and react to future threats is part of the reason Buffett invests so heavily in Wells. This farsightedness surely played a part in the bank’s recent ascension to the rank of the world’s largest bank, as Wells’ market capitalization surpassed six-year champ Industrial & Commerical Bank of China. Hindsight can impart valuable lessons, but it is foresight that will put you at the top of the heap.
The article Wells Fargo’s Uncanny Knack for Sensing Trouble 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 Bank of America, Berkshire Hathaway, and Wells Fargo. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, Citigroup, JPMorgan Chase, and Wells Fargo.
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