Citigroup Badly Needed a Catalyst. Then It Landed Warren Buffett.
It has not been an easy year for Citigroup (NYSE: C). The nation's third-largest bank by assets has seen its stock fall by 17.5% this year as of Thursday's close, trading at a significant discount to its tangible book value (TBV), or its net worth. Even though it's hired a new CEO, pledged to clean up regulatory issues, and launched a whole new transformation plan, investors have been reluctant to buy in.
So, when legendary investor Warren Buffett and his company, Berkshire Hathaway, recently disclosed that they had taken a stake in Citigroup, I viewed it as a huge victory for the struggling bank that came at just the right time. Here's why.
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Source Fool.com
