Every time Berkshire Hathaway (BRK.B, BRK.A) files a 13F form, Warren Buffet disciples flock to see what the Oracle of Omaha has been buying and selling. But in Buffett’s most recent disclosure, the fact that he merely stopped buying Wells Fargo (WFC), Kinder Morgan(KMI) and Axalta Coating Systems (AXTA) in Q1 could be a much more subtle indication of what he is thinking.
Buffett Still Happy With Wells Fargo (WFC)?
Berkshire owns more than $23 billion of WFC stock, so to suggest that Buffett is no longer bullish on the stock is a bit of a stretch. But it issomewhat surprising to see that Buffett didn’t buy any WFC in Q1 when the stock is down roughly 11% from the prices at which he was buying it in Q4.
Way back in 1977, Buffet told his shareholders they shouldn’t stress about falling share prices:
“If their business experience continues to satisfy us, we welcome lower market prices of stocks we own as an opportunity to acquire even more of a good thing at a better price,” he wrote.
That has certainly been Buffett’s philosophy when it comes to IBM (IBM), for example, which he first bought back in 2011 at a price of around $172.
Perhaps Buffett is simply content with the $23 billion worth of WFC stock, but investors will be watching closely in coming quarters for any sign that he has had a change of heart.
Buffett Blows It on Kinder Morgan (KMI)
Buffett took…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!