John Carey, Portfolio Manager
May 16, 2018
Wells Fargo (WFC) hit an All-Time-High of $66.31 per share in late January of this year. The stock actually rallied during the Fourth Quarter of last year and into 2018 as many investors believed that the worst was over for the bank. As more and more negative news came out and additional settlements were paid, the stock declined about 17% from $66.31 per share in January to its current level in the mid-$50s. During this same period, many banks and financial stocks went in the other direction and recently have achieved All-Time Highs. I believe the 17% price decline, coupled more negative news and settlements now being in the rear view mirror, make this high-quality bank stock an attractive investment opportunity.

Warren Buffett's Berkshire Hathaway is the largest shareholder of Wells Fargo and owns 9.37% of its outstanding stock. Berkshire has never sold a share of Wells Fargo for fundamental investment reasons and, at the company's recent annual meeting, Mr. Buffett made it clear that Berkshire will remain a long-term Wells shareholder.