No. of Recommendations: 9
In the last three days he sold 18,899,518 shares for $802,486,391. Average price $42.46/share...I was curious about something, so I looked it up.
It's kind of interesting to see that Wells Fargo stock has considerably outperformed Bank of America since Mr Buffett sold WFC. The proceeds from the Wells sale were not used to buy BofA stock, but BofA certainly took over the position of "favourite bank".
The WFC sales were mainly in two batches, 2020-Q4 probably at prices around $26, and 2021-Q3 probably at prices around $43. Rough estimate, that would be like selling at a weighted average date and price of end-March 2021 at about $33. Current price is $60, plus the foregone dividends since then. BAC has gone from $33 to $41 in about the same stretch, rise about 15% smaller.
WFC stock has outperformed BAC pretty steadily since Berkshire sold the first big whack of WFC in late 2020, right until roughly early May this year.
A graph of the ratio of the two, both using total return including dividends
https://stockcharts.com/h-sc/ui?s=WFC%3ABAC&p=D&st...I'm not saying that I'm a fan of Wells Fargo. But I do still think it odd that Mr Buffett sold when he did, since it seemed pretty plain for the first tranche that they could certainly still make $4 a share most of the time and therefore that $26 was a temporarily very low price. It seemed pretty clear that about a billion (pre tax) was left on the table as a result. Oh well, stuff happens.
Jim
