Why Warren Buffett May Already Be Feeling Better About the Banking Sector
Famed investor Warren Buffett and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) went negative on bank stocks in the second quarter. We learned last week in Berkshire's quarterly 13F report that the conglomerate didn't add to any of its financial stocks in the second quarter. It decreased its stake in most bank stocks, including huge reductions in JPMorgan Chase and Wells Fargo. The company also eliminated its position in investment bank Goldman Sachs and cut its smaller stakes in several regional banks and digital payment companies.
While 13F reports can be great tools for investors, they often do not present the whole picture because they do not say exactly when each move was made, and they are typically reported more than a month after the quarter ends. For instance, Buffett and Berkshire could have made these moves in April or May, when many areas were sheltering in place as a result of the coronavirus pandemic. Despite the Oracle of Omaha's stock sales in Q2, there is already reason to believe he's feeling much better about the banking sector as a whole. Here's why.
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Source Fool.com
