Warren Buffett on Wells Fargo and Banks
Note: Nick Nejad… you will probably be interested in this article.
Click Here To Read Warren Buffett’s Thoughts On Wells Fargo
Article Excerpt (Via Street Capitalist)
Almost 20 years ago they were saying the same thing. In the end banking is a very good business unless you do dumb things. You get your money extraordinarily cheap and you don’t have to do dumb things. But periodically banks do it, and they do it as a flock, like international loans in the 80s. You don’t have to be a rocket scientist when your raw material cost is less than 1-1/2%. So I know that you can have a model that works fine and Wells has come closer to doing that right than any other big bank by some margin. They get their money cheaper than anybody else. We’re the low-cost producer at Geico in auto insurance among big companies. And when you’re the low-cost producer – whether it’s copper, or in banking – it’s huge.
