Of Special Interest


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18th November 2011

Buffet sees value in financial services stock prices

Berkshire Hathaway, the value investor led by the famous Warren Buffet has been investing in financial stocks. The company purchased an additional 9m shares in Wells Fargo and is believed to have built up a holding of over 6.8% in the bank. It has held MasterCard stock for some time and has recently bought nearly 2.3m shares in Visa Inc. Whether the Visa Inc. investment is because of disappointment with MasterCard or because of belief in the card sector overall is not clear.

Buffet told CNBC that "American companies look very cheap compared to investment alternatives". Buffet has normally avoided technology companies complaining that the does not understand them well enough to make decisions however recently took a major stake in IBM, and may now be their largest shareholder. Temasek also returned to investment in banking this month.

[See Newslink: Temasek increases China Construction holding ]