Despite the Crisis, Warren Buffett Has Stuck With These 2 Mega Bank Stocks
The banking crisis that broke out in March, which has led to the collapse of four U.S. banks and Credit Suisse, has led to a sell-off of bank stocks across the sector.
The SPDR S Regional Banking ETF (NYSEMKT: KRE) is down close to 31% this year, while the KBW Nasdaq Bank index, which covers larger banks, is down more than 23%. Many investors are worried the sector may not have seen deposit flows stabilize yet and also faces the normalization of credit, which will lead to higher loan losses and stricter regulatory requirements as well, all of which will weigh on earnings and overall returns.
But despite the concerns, Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) stuck with two of its large bank holdings and slightly increased its position in these holdings during the first quarter. Let's take a look.
Source Fool.com
Berkshire Hathaway Inc. A Stock
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