Here's How Warren Buffett Explained Berkshire Hathaway's Bank Selloff
Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) annual shareholder meeting and its marathon question-and-answer session have once again come and gone, offering investors another glimpse into the extraordinary mind of legendary investor Warren Buffett. Some of the questions that came up in Saturday's livestream dealt with moves Berkshire made during the early stages of the pandemic last year -- including what led the company to exit most of its banking positions while loading up on Bank of America (NYSE: BAC). After months of speculation, Buffett gave a little bit of insight into what drove his decision making.
Prior to the pandemic, Berkshire owned a slate of bank stocks, and Buffett seemed to have a bullish stance toward the sector. However, as stay-at-home orders and economic shutdowns spread across the country and banks braced for heavy loan losses, Buffett seemed to do a 180 and exited many of his holdings.
Berkshire eliminated its stake in investment bank Goldman Sachs and eventually JPMorgan Chase, America's largest bank by assets. Berkshire also sold its position in regional banks like PNC Financial Services Group and M&T Bank. And Buffett appears to be looking for an exit on former favorite Wells Fargo, selling shares gradually for the past several quarters.
Source Fool.com
