One of the richest men in the U.S.A., investor Warren Buffet used U.S. stock market slump to buy Wells Fargo bank’s shares. Wells Fargo is the fourth largest bank in the U.S.A. by assets. Bloomberg says that Buffet, who prefers to buy stocks of undervalued companies, has bought 9.7 million shares of Wells Fargo and became the major shareholder with 2.8% shares of San-Francisco-based bank. In order to increase his interest in Wells Fargo, Buffet spent 277 million dollars. Buffet’s company Berkshire Hathaway bought Wells Fargo’s shares on August 8, when Standard & Poor’s 500 index fell down by 6.7% and showed the most significant slide since 2008. In PBS interview Buffet said that he likes to buy when everyone is selling and noted that on August 8 Berkshire Hathaway spent maximum per one trading session in 2011. In the quarter that ended on July 30 Wells Fargo shares lost 12% and 11% more in the current quarter. According to the data released on June 30, Berkshire share portfolio was estimated at 67.6 billion dollars and 40% of it is consumer market and 37% is the financial sector. Buffet’s fortune is estimated at 50 billion dollars according to Forbs rating 2011.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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