Dividends4Life: Warren Buffett's 2 Favorite Banks Look Compelling

Dividend Growth Stocks News

It's no secret that Warren Buffett has an affinity for owning bank stocks. As far as the largest of banks are concerned, a couple years ago Buffett indicated that he had a personal sake in JPMorgan (NYSE:JPM). For his Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) conglomerate, Buffett owns billions in Bank of America (NYSE:BAC) warrants. If you were to search the latest company filing Berkshire has stakes in smaller banks like Bank of New York Mellon (NYSE:BK) and M&T Bank (NYSE:MTB), to go along with other financial firms like American Express (NYSE:AXP), MasterCard (NYSE:MA), Visa (NYSE:V) and Goldman Sachs (NYSE:GS). The industry seems to fit his model well and Berkshire hasn't been shy about owning large chunks of these types of companies.

Of course we haven't yet talked about perhaps Buffett's two "favorite" bank holdings: Wells Fargo (NYSE:WFC) and U.S. Bancorp (NYSE:USB). Excluding the Bank of America warrants, these are the two largest bank holdings within Berkshire Hathaway's publicly traded portfolio. As of the last filing, Berkshire owned nearly 480 million shares of Wells Fargo (worth $23 billion or so) and 85 million shares of U.S. Bancorp (worth $3.4 billion or thereabouts). What's interesting to me is that despite the much higher share prices in the last few years, both of these securities could still be "low bar" investment opportunities.

Source: Seeking Alpha

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