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Berkshire Wants Higher Wells Fargo Stake

$50M Wells Fargo settlement

Berkshire Hathaway, perhaps best known as the conglomerate steered by Warren Buffett, the famed investor, wants to boost its stake in Wells Fargo.

As has been reported by Bloomberg, the firm has submitted an application to the Federal Reserve to move beyond the 10 percent stake that requires a regulatory review (and sign-off) by the government – though generally speaking, the 10 percent threshold does not have to be officially discussed in the event that the threshold is reached due to share buybacks.

According to the newswire, the application to the Fed noted that Berkshire wants to buy common shares and added that the application did not offer up details on dollar amounts proposed for the additional stock buys.  

Berkshire does not, however, have plans to merge Wells with other entities or seek to make significant changes to either the financial outfit’s corporate structure or strategy.  If past is prologue, Buffett in the past acquired a stake amounting to 16 percent in American Express, and the stake, which had begun its journey of accumulation a few decades ago, remains a passive one.

In response to the June filing with the Fed to boost the stake, Wells Fargo has said via email that “We are aware of Berkshire’s most recent filing.  We value Berkshire Hathaway as a long-term shareholder and customer, and we appreciate the confidence that Berkshire’s executive team has shown in Wells Fargo.”


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