Warren Buffett Is Piling Into These 2 Beaten-Down Stocks
Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) owns at least half a dozen bank stocks, and many of these holdings are highly regarded in the industry. But there are some banks that Berkshire has invested in this year that have not only seen their stock prices dip sharply but are also trading at extremely low valuations.
Buffett has always advised traders to be greedy when others are fearful, and Berkshire is certainly following that advice by investing in these two beaten-down stocks. Here's why.
For more than two decades, Buffett and Berkshire passed over Citigroup (NYSE: C), instead deciding to invest in nearly all of Citigroup's peers. But in the first quarter of this year, Berkshire took a new stake in Citigroup, purchasing more than 55.1 million shares valued at about $2.5 billion. Citigroup's stock has fallen close to 20% this year and now trades at roughly 63% of its tangible book value, or net worth.
Source Fool.com
