NEW YORK - A Buffet's best friend is a bank from San Francisco, Wells Fargo. Wells Fargo is the fourth largest bank in the United States and the second largest by assets.
The price of Wells Fargo has dropped by 26% since its high compared to a 6% drop by the S&P 500. Warren Buffett has continued to buy shares in the company. The stock has caught more negative sentiment than the average bank due to the suspicious retirement of its former CFO Howard Atkins. However it also got a strong endorsement by Buffett who said he would bet all the money in the world against there being accounting problems at WFC.
Allan Edwards the CEO of the Markets Are Open said "Well its Far Off," Edwards was commentating that WFC's stock price is far off its intrinsic value.
Edwards continues to recommend U.S. Banks which are now trading at the most "unrealistic prices I have ever seen." Edwards finished "why not stick a bullet to your head and buy some Irish or Greek Banks? which of those banks are earning record profits?." Edwards is remarking that WFC, JPM and PNC are all recording record profits but the stocks remain depressed.
Now is the time to buy U.S. Financials.
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