Value Investing

Berkshire Hathaway Selling Shares In Wells Fargo To Keep Stake Under 10%

Berkshire Hathaway announced today that it has sold about 7 million shares of Wells Fargo and it plans to sell another 2 million shares in order to keep its ownership stake below 10% so it would not be classified as a bank holding company.  These sales represent less than 2% of its 500 hundred million share stake.

wells fargo
By The original uploader was Henry W. Schmitt at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons
Berkshire’s press release states:

“We will monitor the outstanding share count of Wells Fargo in the future, and, if necessary sell shares in amounts to keep our ownership interest slightly below 10%.  Berkshire has no present intention to sell Wells Fargo shares in amounts beyond the quantity required to provide a small safety margin below 10%”

Article by Dr. David Kass