(GuruFocus, October 21, 2009) Wells Fargo on Wednesday reported quarterly result this morning. The nation's fourth-largest bank reported a third-quarter profit of $2.64 billion, or 56 cents per share, after paying preferred dividends, up from $1.64 billion, or 49 cents per share, a year ago. Analysts, on average, were expecting earnings of 37 cents per share. The results include the loan business it acquired with the purchase of Wachovia, offset its rising loan losses.
Wells Fargo also offered a more upbeat outlook than some of the other banks, saying it expects credit losses to peak in 2010, with consumer losses possibly even peaking by the first half of the year.
Investment Guru Warren Buffett ‘s Berkshire Hathaway is the largest shareholder of the banking company. In the past, Buffett was very bullish on this stock an claimed the company has $40 billion pre-tax pre-prevision earning capacity per year.
Here is Dick Bove reflecting on the Wells Fargo's results and that of other financials:
Guru Ownership
Wells Fargo & Company is owned by 24 Gurus. At the end of 2Q009:
3 Gurus Initiated Positions in WFC:
Michael Price bought 202,000 shares in the quarter , which is 1.71% of the $285 million portfolio of MFP Investors LLC.
John Griffin bought 500,000 shares in the quarter , which is 0.31% of the $3.93 billion portfolio of Blue Ridge Capital.
David Williams bought 15,000 shares in the quarter , which is 0.22% of the $6.48 billion portfolio of Columbia Value and Restructuring Fund.
4 Gurus Increased Positions in WFC:
Ron Baron owns 264,000 shares , an increase of 38.22% from the previous quarter. This position accounts for 0.05% of the $11.99 billion portfolio of Baron Funds.
Jean-Marie Eveillard owns 2,026,689 shares , an increase of 33.24% from the previous quarter. This position accounts for 0.55% of the $8.91 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC.
HOTCHKIS & WILEY owns 17,927,577 shares , an increase of 20.41% from the previous quarter. This position accounts for 3.75% of the $11.61 billion portfolio of HOTCHKIS & WILEY Capital Management LLC.
Chris Davis owns 97,447,688 shares , an increase of 14.43% from the previous quarter. This position accounts for 4.56% of the $51.82 billion portfolio of Davis Selected Advisers.
15 Gurus Kept Positions in WFC Unchanged or Slightly Adjusted:
Chris Davis owns 97,447,688 shares , which accounts for 4.56% of the $51.82 billion portfolio of Davis Selected Advisers.
David Williams owns 16,000 shares as of 09/30/2009, which accounts for 0.22% of the $6.48 billion portfolio of Columbia Value and Restructuring Fund.
Dodge & Cox owns 82,146,205 shares , which accounts for 2.98% of the $66.88 billion portfolio of Dodge & Cox.
NWQ Managers owns 16,730,874 shares , which accounts for 2.74% of the $14.8 billion portfolio of NWQ Investment Management Co.
Charles Brandes owns 8,791,388 shares , which accounts for 1.16% of the $18.33 billion portfolio of Brandes Investment.
Warren Buffett owns 302,609,212 shares , which accounts for 15% of the $48.95 billion portfolio of Berkshire Hathaway.
Prem Watsa owns 20,028,700 shares , which accounts for 9.32% of the $5.21 billion portfolio of Fairfax Financial Holdings, Inc..
Wallace Weitz owns 722,500 shares , which accounts for 1.14% of the $1.54 billion portfolio of Weitz Wallace R & Co.
Donald Yacktman owns 14,500 shares , which accounts for 0.03% of the $1.06 billion portfolio of Yacktman Asset Management Co..
Brian Rogers owns 9,969,500 shares , which accounts for 1.77% of the $13.63 billion portfolio of T Rowe Price Equity Income Fund.
Mohnish Pabrai owns 369,701 shares , which accounts for 3.82% of the $234 million portfolio of Pabrai Mohnish.
John Keeley owns 47,000 shares , which accounts for 0.02% of the $5.82 billion portfolio of Keeley Fund Management.
Richard Snow owns 2,470,376 shares , which accounts for 3.05% of the $1.96 billion portfolio of Snow Capital Management, L.P..
PRIMECAP Management owns 1,385,000 shares , which accounts for 0.07% of the $48.26 billion portfolio of PRIMECAP Management. Richard Aster Jr owns 758,400 shares , which accounts for 0.93% of the $1.98 billion portfolio of Meridian Fund.
3 Gurus Reduced Positions in WFC:
Kenneth Fisher owns 11,521 shares , a decrease of 24.05% of from the previous quarter. This position accounts for less than 0.01% of the $24.67 billion portfolio of Fisher Asset Management, LLC.
Arnold Van Den Berg owns 2,129,371 shares , a decrease of 29.37% of from the previous quarter. This position accounts for 3.63% of the $1.43 billion portfolio of Century Management.
David Dreman owns 1,239,369 shares , a decrease of 80.94% of from the previous quarter. This position accounts for 0.96% of the $3.12 billion portfolio of Dreman Value Management.
Insider Trading Activities
Sell:: Sr. Executive Vice President on 09/15/2009 Mark C Oman sold 25,000 shares of WFC stock at the average price of 28.66, the price of the stock has increased by 6.28% since
Sell:: Sr. Executive Vice President on 08/21/2009 Mark C Oman sold 25,000 shares of WFC stock at the average price of 28, the price of the stock has increased by 8.79% since
Sell:: Executive Vice President on 08/06/2009 Julie M White sold 5,000 shares of WFC stock at the average price of 28.02, the price of the stock has increased by 8.71% since
Wells Fargo also offered a more upbeat outlook than some of the other banks, saying it expects credit losses to peak in 2010, with consumer losses possibly even peaking by the first half of the year.
Investment Guru Warren Buffett ‘s Berkshire Hathaway is the largest shareholder of the banking company. In the past, Buffett was very bullish on this stock an claimed the company has $40 billion pre-tax pre-prevision earning capacity per year.
Here is Dick Bove reflecting on the Wells Fargo's results and that of other financials:
Guru Ownership
Wells Fargo & Company is owned by 24 Gurus. At the end of 2Q009:
3 Gurus Initiated Positions in WFC:
Michael Price bought 202,000 shares in the quarter , which is 1.71% of the $285 million portfolio of MFP Investors LLC.
John Griffin bought 500,000 shares in the quarter , which is 0.31% of the $3.93 billion portfolio of Blue Ridge Capital.
David Williams bought 15,000 shares in the quarter , which is 0.22% of the $6.48 billion portfolio of Columbia Value and Restructuring Fund.
4 Gurus Increased Positions in WFC:
Ron Baron owns 264,000 shares , an increase of 38.22% from the previous quarter. This position accounts for 0.05% of the $11.99 billion portfolio of Baron Funds.
Jean-Marie Eveillard owns 2,026,689 shares , an increase of 33.24% from the previous quarter. This position accounts for 0.55% of the $8.91 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC.
HOTCHKIS & WILEY owns 17,927,577 shares , an increase of 20.41% from the previous quarter. This position accounts for 3.75% of the $11.61 billion portfolio of HOTCHKIS & WILEY Capital Management LLC.
Chris Davis owns 97,447,688 shares , an increase of 14.43% from the previous quarter. This position accounts for 4.56% of the $51.82 billion portfolio of Davis Selected Advisers.
15 Gurus Kept Positions in WFC Unchanged or Slightly Adjusted:
Chris Davis owns 97,447,688 shares , which accounts for 4.56% of the $51.82 billion portfolio of Davis Selected Advisers.
David Williams owns 16,000 shares as of 09/30/2009, which accounts for 0.22% of the $6.48 billion portfolio of Columbia Value and Restructuring Fund.
Dodge & Cox owns 82,146,205 shares , which accounts for 2.98% of the $66.88 billion portfolio of Dodge & Cox.
NWQ Managers owns 16,730,874 shares , which accounts for 2.74% of the $14.8 billion portfolio of NWQ Investment Management Co.
Charles Brandes owns 8,791,388 shares , which accounts for 1.16% of the $18.33 billion portfolio of Brandes Investment.
Warren Buffett owns 302,609,212 shares , which accounts for 15% of the $48.95 billion portfolio of Berkshire Hathaway.
Prem Watsa owns 20,028,700 shares , which accounts for 9.32% of the $5.21 billion portfolio of Fairfax Financial Holdings, Inc..
Wallace Weitz owns 722,500 shares , which accounts for 1.14% of the $1.54 billion portfolio of Weitz Wallace R & Co.
Donald Yacktman owns 14,500 shares , which accounts for 0.03% of the $1.06 billion portfolio of Yacktman Asset Management Co..
Brian Rogers owns 9,969,500 shares , which accounts for 1.77% of the $13.63 billion portfolio of T Rowe Price Equity Income Fund.
Mohnish Pabrai owns 369,701 shares , which accounts for 3.82% of the $234 million portfolio of Pabrai Mohnish.
John Keeley owns 47,000 shares , which accounts for 0.02% of the $5.82 billion portfolio of Keeley Fund Management.
Richard Snow owns 2,470,376 shares , which accounts for 3.05% of the $1.96 billion portfolio of Snow Capital Management, L.P..
PRIMECAP Management owns 1,385,000 shares , which accounts for 0.07% of the $48.26 billion portfolio of PRIMECAP Management. Richard Aster Jr owns 758,400 shares , which accounts for 0.93% of the $1.98 billion portfolio of Meridian Fund.
3 Gurus Reduced Positions in WFC:
Kenneth Fisher owns 11,521 shares , a decrease of 24.05% of from the previous quarter. This position accounts for less than 0.01% of the $24.67 billion portfolio of Fisher Asset Management, LLC.
Arnold Van Den Berg owns 2,129,371 shares , a decrease of 29.37% of from the previous quarter. This position accounts for 3.63% of the $1.43 billion portfolio of Century Management.
David Dreman owns 1,239,369 shares , a decrease of 80.94% of from the previous quarter. This position accounts for 0.96% of the $3.12 billion portfolio of Dreman Value Management.
Insider Trading Activities
Sell:: Sr. Executive Vice President on 09/15/2009 Mark C Oman sold 25,000 shares of WFC stock at the average price of 28.66, the price of the stock has increased by 6.28% since
Sell:: Sr. Executive Vice President on 08/21/2009 Mark C Oman sold 25,000 shares of WFC stock at the average price of 28, the price of the stock has increased by 8.79% since
Sell:: Executive Vice President on 08/06/2009 Julie M White sold 5,000 shares of WFC stock at the average price of 28.02, the price of the stock has increased by 8.71% since
