Why Wells Fargo Continued to Be Buffett’s Largest Holding in 3Q17

Warren Buffett’s largest holdings in 3Q17

In the previous part of this series, we discussed that Warren Buffett is fully bullish on the stock market (SPX-INDEX), and he believes that the tax reform will add more value to the equity market rally.

Why Wells Fargo Continued to Be Buffett’s Largest Holding in 3Q17

Billionaire investor Warren Buffett is very optimistic about the financial sector. The financial sector was the largest sector in his firm’s portfolio in 3Q17. It represented nearly 40.4% of his firm’s portfolio in 3Q17. Wells Fargo (WFC), Apple (AAPL), Kraft Heinz (KHC), Coca-Cola (KO), and Bank of America (BAC) were Berkshire Hathaway’s largest holdings in 3Q17.

These stocks represented nearly 14.4%, 11.6%, 14.2%, 10.1%, and 9.7%, respectively, of his firm’s portfolio in 3Q17. Among all these stocks, Wells Fargo was the top holding of his firm. Buffett is optimistic on this stock in spite of the huge fake account scandal last year. He has confidence in Wells Fargo CEO, Timothy Sloan.

According to the institutional ownership report, Buffett’s Berkshire Hathaway (BRK-B) was the largest investor in Wells Fargo in 3Q17 with 464.2 million shares. Similarly, Berkshire Hathaway was the largest investor in Bank of America in 3Q17 with 679 million shares.

In the next part of this series, we’ll analyze Warren Buffett’s view on the cryptocurrencies.