It is amazing to me how: (1) Wells Fargo has been through so many booms and busts and (2) still managed to deliver absolutely extraordinary results to shareholders over just about every long-term measuring period imagine. Bought Wells Fargo stock in 1950? You went on to compound at 15.66% annually. 1960? 16.64% annually. 1970? 14.20% annually. 1980? 15.47% annually. 1990? 14.95% annually. 2000? 8.40% annually. 2010? 13.16% annually. With the exception of 2000 when Wells Fargo was trading at a lofty 21x earnings valuation, this bank has been delivering nice double-digit returns to shareholders from nearly every long-term measuring period.
It is the signature holding of Warren Buffett’s common stock portfolio, which stood at 483 million shares as of the most recent annual letter. Based on Friday’s closing price of $49 per share, the Berkshire position in Wells Fargo is currently $23.6 billion.
You know what I found enormously interesting? … Read the rest of this article!