Warren Buffett and Berkshire Hathaway Are Done With Wells Fargo. Should You Follow Their Lead?
Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) recently disclosed that they sold off their last remaining holdings of Wells Fargo (NYSE: WFC) in the first quarter of 2022. Berkshire had significantly reduced its position in Wells Fargo in recent years, so this has been expected. But the elimination of Wells Fargo marks the end of an era, as Berkshire first began investing in the company more than 30 years ago.
Should investors follow Buffett and Berkshire's lead and exit the stock? Let's take a look.
It's pretty clear that Buffett and Berkshire exited Wells Fargo because of the years of dealing with the fallout of the bank's phony accounts scandal, in which employees at Wells Fargo opened credit card and bank accounts on behalf of thousands of customers without their consent. When the scandal officially came to light around 2016, it rocked the banking world.
Source Fool.com
