Warren Buffett missed out on $10 billion in gains by dumping Wells Fargo stock — but he probably doesn't regret cashing out
"Given the numerous controversies clouding Wells Fargo's outlook, Buffett might be happy to have cut ties at a cost of $10 billion in gains."
https://www.businessinsider.in/stock-market/news/warren-buffett-missed-out-on-10-billion-in-gains-by-dumping-wells-fargo-stock-but-he-probably-doesnt-regret-cashing-out/articleshow/88957379.cms
9 replies (most recent on top)
How does that compare to the other financial services we compete with?
WFC stock price of $50.71 when Charlie joined on sept 27 2019 to ~$56.26 today. 2 years, 3 months, 23 days. Not that good of a return.
Two words: Opportunity cost
Buffett sold loser WF stock and reinvested the $$ on stocks with much greater returns.
He knows.the investment game MUCH better than anyone on this forum (otherwise, you'd be as well known as he is and we'd be posting about you).
Buffet values his own name and reputation more than money.
I agree with what Buffet did. 10 billion is nothing to him
His sidekick Charlie held, they both know the stock is selling for a fraction of its true value.
Buffett just didn't like the fact the board didn't like his advice and went ahead and hired a CEO who's based in NY when the HQ is in SF. Also look what he did, he just move the money to BofA, the second best option.
Sell in to strength
Our execs all have 10b-51 plans in place to come out of their positions at various price points as the stock moves higher. (You won’t see any of them doing the reverse, buying in to weakness.)
lol, as an investor who the heck cares about "controversy"? It's not like he's to blame for wrong-doing, he's just an invesor. Give me the $10B payday and I can buy good press, if that's what I care about.
What’s happening now with WF stock prices is an artificial “Pump and Dump” that’s spurred by stock buybacks and cost cutting. It’s not something that will be sustainable utilizing our current operating model. Uncle Warren has always played a long game. He jettisoned his stock because he knows in the long run WF isn’t innovative enough to provide a long term profits for Berkshire Hathaway.🤷🏻