
Berkshire Hathaway Now Owns 10% of Wells Fargo by
A recent Form 3 filing with the SEC reveals that Berkshire Hathaway’s total stake in Wells Fargo & Co. has risen to 504.3 million shares, representing a 10% stake in the common stock of Wells Fargo.
As noted in a previous article, due to regulations (here is a slightly more readable breakdownof the regulatory language), Berkshire cannot buy more than 10% of the bank – it’s ownership in Wells Fargo, or any other bank, can only grow by share count reductions once a 10% ownership stake limit is hit.
Nomad Investment Partnership: Keep An Eye On The Unseen Risks
There are many ways to define risk. Warren Buffett has said that "risk comes from not knowing what you're doing." Q3 2020 hedge fund letters, conferences and more His mentor, Benjamin Graham, believed that risk should be measured as the chance of a permanent capital impairment of an investment. Seth Klarman also holds this view. Read More
This same restriction applies to Berkshire Hathaway’s stake in American Express, as the credit card company converted into a bank holding company during the 2008-2009 financial crisis.