Warren Buffett demonstrated he’s still bullish on U.S. retail banking — but not on Wells Fargo & Co.
The billionaire investor ended his long-running bet on Wells Fargo during the first quarter, according to a filing Monday from his Berkshire Hathaway Inc. Berkshire also reported new stakes in banking giant Citigroup Inc. and in auto lender Ally Financial Inc.
Berkshire sold off its remaining Wells Fargo shares after months of paring a holding that once ranked as the conglomerate’s biggest common-stock bet. Buffett, Berkshire’s chairman and chief executive officer, began building the investment three decades ago and has long lauded its business, sticking by the firm after its scandals began erupting in 2016.
Buffett’s exit comes as Wells Fargo CEO Charlie Scharf continues to grapple with legacy regulatory issues and takes steps to improve efficiency, which include job cuts and the exploration of potential sales of businesses. The San Francisco-based bank’s shares have declined about 12% this year.
Buffett had publicly urged the Wells Fargo board not to hire a leader from Wall Street. Though Scharf has a track record of running consumer-facing businesses and improving them with technology, his resume featured time at securities-industry giant JPMorgan Chase & Co., and more recently atop Bank of New York Mellon Corp. Scharf also struck an agreement to work from New York, instead of the San Francisco headquarters, a move Buffett’s business partner, Charlie Munger, called “outrageous.”
A last-minute court filing ends a case against the federal tax-collecting agency that had drawn unprecedented conflict-of-interest questions from Democratic critics.
Advisors discuss their use of AI now and how it will change going forward
Medicare scam, pandemic benefit theft, offshore tax evasion — federal prosecutors are casting a wide net.
Report finds that pension income acts as a financial lifeline for retirees facing late-life shocks and raises urgent questions about the DC-only future.
Nine-month electronic trading freeze and share lending program at the center of dismissed claim.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
