Wells Fargo
WFCWells Fargo
Wells Fargo was one of Berkshire Hathaway's largest and longest-held bank positions, begun in 1990 and eventually exited in the early 2020s after a series of governance and sales-practice scandals.
The Investment
Buffett bought Wells Fargo in 1990 during a period of real-estate uncertainty, betting on a well-run banking franchise with a low-cost deposit base and strong operating leverage. For decades it was a centerpiece of Berkshire's financials exposure.
The Lesson
The eventual exit is itself instructive. Even a wonderful business can be impaired by incentive structures that reward the wrong behavior. Buffett's willingness to hold for decades—and then to sell when trust broke—illustrates both patience and principle.
Why It Still Matters
Wells Fargo remains a classic case study in how a durable moat in banking depends as much on culture and incentives as on balance-sheet scale, and how capital allocation discipline must extend to governance, not just numbers.
Mentions in Letters
“We began building a position in Wells Fargo, a superbly run bank, even as the real-estate market looked troubled.”
“Our long-held Wells Fargo stake reflected decades of confidence in its banking franchise—until governance problems emerged.”
Analyze WFC the Buffett Way
Use the ValueOS scoring system for a one-click assessment of Wells Fargo.