Warren Buffett On His Latest $7 Billion Investment Win
By Xyla Joelle L. Fernandez
Nov 23, 2016 06:00 AM EST
Nov 23, 2016 06:00 AM EST
Warren Buffet, a billionaire investor was an outspoken supporter of Hillary Clinton on the previous election but Berkshire Hathaway has ben a major beneficiary of Donald Trump election. The market as a whole is at record highs, but bank stocks have been some of the best performers, and Berkshire owns plenty.
Here is a look at how Warren Buffet bank stocks have done since the election.
Buffet's Bank Stocks:
The Berkshire Hathaway's stock portfolio contains several bank stock including large stakes in American Express with a number of shares of 151,610,700 and a price of $67 on November 7 2016 and $71 price on November 18 2016. Bank of New York have a number of shares of 21,136,712 and a price of $44.03 on 11/7/2016 and $47.44 on 11/18/2016. Goldman Sachs with shares of 10,959,519 and a price of $181.48 on 11/7/2016 and $210.35 on 11/18/2016. M&T Bank Corp with shares of 5,382,040 and price of $124.88 o 11/7/2016 and $141.26 on 11/18/2016. U.S Bank Corp with shares of 85,063,167 and prices of $44.92 on 11/7/2016 and $49.23 on 11/18/2016. Wells Fargo with a number of shares of 479,704,270 and prices of $45.40 on 11/7/2016 and $52.82 and 11/18/2016.
Berkshire holds warrants to buy 700 million shares of Bank of America stock, which has climbed from $17.01 to $20.00 in the post-election rally and has been one of the top performers in the financial sector.
In the investment of Bank of America, the price gains in the chart show that Berkshire has gained a total of $7.1 billion since the election from its bank stocks alone.
Trump has pledged to eliminate regulations, and few industries are as burdened with regulation as the banking industry. He had also pledged to either ease or repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in the wake of the 2008 financial crisis with the intention of preventing any more major financial institutions from collapsing, as well as protecting consumers.
Trump's planned tax cuts and increased spending could be good for banks in several ways. One is the expectation that lower taxes will translate into more money in consumers' paychecks and bank accounts. Another is the fact that Trump's policies are pro-growth, which could lead to higher interest rates, which in turn would translate into better profit margins for banks.
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