5 Reasons Warren Buffett May Be Done Buying Banks for a While
Since the pandemic began in early 2020, Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) have mostly been selling bank stocks, not including Bank of America (NYSE: BAC). The Oracle of Omaha abruptly changed his position on large behemoths like Goldman Sachs and JPMorgan Chase, with Berkshire quickly eliminating its positions in those banks in just a few quarters, while also all but eliminating the company's position in one-time favorite Wells Fargo (NYSE: WFC).
While I can't say I completely understand the moves, nor can I predict what one of the greatest investing minds ever will do next, I think Buffett and Berkshire may be done investing in banks for a while. Here are five reasons why.
Throughout the pandemic, Buffett, a longtime bank stock investor, didn't abandon banks altogether, but rather got more selective about which banks he held. For instance, Berkshire completely dumped JPMorgan Chase and invested $2 billion more into Bank of America, of which he now owns close to 12% of outstanding shares. That makes Bank of America look like Buffett's mega bank of choice. Berkshire also clung tight to credit card company American Express (NYSE: AXP), a brand he has called "special," while eliminating his position in another credit card company, Synchrony Financial, making American Express look like his credit card company of choice.
Source Fool.com
