Banking with Buffett
November 26, 2012 2:49 PM
Whether it's Warren Buffett's latest views on taxes or his missives to shareholders, market watchers hang on the billionaire's every word. His company Berkshire Hathaway's big stakes in Wells Fargo, Bank of America and American Express have spoken loudly about whom he favors in banking. Click to view highlights of his long, sometimes bumpy, history with banks.
A Forgotten Chapter
Buffett's $700 million investment in the defunct Wall Street firm Salomon Brothers in the 1980s was marred by a bond-trading scandal .
Bailing Out B of A, Goldman
Buffett came to the rescue of two of America's largest financial institutions — Bank of America (BAC) and Goldman Sachs (GS) — during the financial crisis. His firm, Berkshire Hathaway, continues to hold about $5 billion of preferred stock and warrants in B of A, as well as warrants for 43.5 million Goldman shares. (Image: Bloomberg News)
Big Bet on Wells
Buffett expects Wells Fargo (WFC), the dominant player in mortgage lending, to benefit when the housing market rebounds and recently widened his lead as its largest shareholder . (Image: Bloomberg News)
It Pays to be 'Boring'
U.S. Bancorp (USB) CEO Richard Davis has described his company as a "pretty boring bank," but Berkshire owns more than 61 million shares valued at more than $2.1 billion as of Sept. (Image: Bloomberg News) 30.
Regional Shuffle
Berkshire sold its stake in Atlanta-based SunTrust Banks (STI) in 2010 after holding it for at least a decade and continues to own shares of M&T Bank (MTB) in Buffalo, N.Y.
MasterCard (and Others) in His Wallet
Berkshire owns more than 150 million shares of American Express (AXP), holds a big stake in Visa (V) and last year bought shares of MasterCard (MA). Is Discover Financial Services (DFS) next? (Image: Bloomberg News)
In Custody
Berkshire holds a large stake in Bank of New York Mellon (BK) , one of the largest custody banks. (Image: Bloomberg News)
Home Sweet Home
Berkshire in October acquired $1.5 billion of mortgage loans from the bankrupt mortgage company Residential Capital. It also owns several suppliers to homebuilders, including manufacturers of bricks, carpet and insulation. (Image: Bloomberg News)
