Maybe Buffet got it right...
There's a lot of interesting stock charts recently, but my favorite has to be Wells Fargo (WFC). On Fri, it hit an ALL-TIME high (not 52-week) of $44, and closed around $40. in July, the stock hit a low of $20.43 levels not seen since early 2003. So in just 2 short months, the stock has covered the movement of 5 years!
In this prolonged low interest rate environ, WFC stands to make bags of cash from their retail banking: borrow at 2%, lend at 8%
posted by Junk Bonds @ 9/20/2008 08:15:00 AM
1 Comments:
Yes Buffet does have the eye for well run businesses! Has WFC wrote off much of the garbage or were they not in as deep as the rest? I like this better than WaMu because the rules are changing so quickly, they may end up bailing out WaMu but equity holders could still take a hit. I suppose any bank especially beat up ones like WaMu may bounce significantly as the details of this bailout are hashed out.
Interestingly the only ones to have been bailed out recently (FRE,FNM, and AIG) had large foreign creditors. Perhaps the Chinese and Japanese were working the phones with Paulson and the gang!
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