WFC - Wells Fargo

[Spekulatius]

^ Banks need to get rid of some deposits, they are literally drowning in them. This is the result of all the stimulus transfers from federal to private.

[CorpRaider]

Sounded to me like Buffett acknowledged a macro/industry desire to sell banks last year more than I've ever heard him acknowledge before.

I think Buffett was the one said that about WFC being the one stonk to rule them all. 

As for the problems, Munger has been pretty consistently blunt that it really wasn't that big a deal, bad incentives will win out, and the shareholders of Wells are pretty much the only ones who got fkd by the "fake accounts".  

I think he tells it like it is, concerning his own mistakes and the mistakes of BRK, 3G, and DJCO, more than just about anyone I've ever come across.  As a recent example, he declined to offer marital advice at DJCO, simply stating that he had been divorced.   

Good points Rasputin.  There are some industry wide pressures but life is getting better for Wells. 

At some point, for some reason, the regulators are likely to unleash all the Kraken, imop.  If I had to guess probably after the shadow banks blow the fk up (like the S&Ls) and the big bank balance sheets are needed to stimulate.

Edited May 2, 2021 by CorpRaider

[ERICOPOLY]

9 hours ago, CorpRaider said:

Sounded to me like Buffett acknowledged a macro/industry desire to sell banks last year more than I've ever heard him acknowledge before.

I think Buffett was the one said that about WFC being the one stonk to rule them all. 

As for the problems, Munger has been pretty consistently blunt that it really wasn't that big a deal, bad incentives will win out, and the shareholders of Wells are pretty much the only ones who got fkd by the "fake accounts".  

I think he tells it like it is, concerning his own mistakes and the mistakes of BRK, 3G, and DJCO, more than just about anyone I've ever come across.  As a recent example, he declined to offer marital advice at DJCO, simply stating that he had been divorced.   

Good points Rasputin.  There are some industry wide pressures but life is getting better for Wells. 

At some point, for some reason, the regulators are likely to unleash all the Kraken, imop.  If I had to guess probably after the shadow banks blow the fk up (like the S&Ls) and the big bank balance sheets are needed to stimulate.

Thanks for clarifying.  I think Munger did give some roundabout marital advice which is to not drive a flashy car so as to keep the wrong types of women away.  That's the type of advice that I followed when I went looking for wife 2.0: I went onto Match.com and looked only at profiles where the woman was a career woman with an established record of supporting herself (which applies similarly well to choosing which stocks to invest in, you want something with stable cash flows that doesn't depend on outside financing).  If they fully depend on you, they can go "cray cray" on you (hyper-vigilant looking for any sign to validate their deepest insecurity that you will leave them).

Edited May 2, 2021 by ERICOPOLY

[DooDiligence]

5 hours ago, ERICOPOLY said:

Thanks for clarifying.  I think Munger did give some roundabout marital advice which is to not drive a flashy car so as to keep the wrong types of women away.  That's the type of advice that I followed when I went looking for wife 2.0: I went onto Match.com and looked only at profiles where the woman was a career woman with an established record of supporting herself (which applies similarly well to choosing which stocks to invest in, you want something with stable cash flows that doesn't depend on outside financing).  If they fully depend on you, they can go "cray cray" on you (hyper-vigilant looking for any sign to validate their deepest insecurity that you will leave them).

Word.

[CorpRaider]

On 5/2/2021 at 7:49 AM, ERICOPOLY said:

Thanks for clarifying.  I think Munger did give some roundabout marital advice which is to not drive a flashy car so as to keep the wrong types of women away.  That's the type of advice that I followed when I went looking for wife 2.0: I went onto Match.com and looked only at profiles where the woman was a career woman with an established record of supporting herself (which applies similarly well to choosing which stocks to invest in, you want something with stable cash flows that doesn't depend on outside financing).  If they fully depend on you, they can go "cray cray" on you (hyper-vigilant looking for any sign to validate their deepest insecurity that you will leave them).

Haha.  That sounds smart.  Never dependent on the kindness of strangers!

Edited May 3, 2021 by CorpRaider

[ourkid8]

Has anyone started reducing their position in WFC? or, are you holding on with the anticipation of rising rates along along with the asset cap being removed.  

[WayWardCloud]

I've sold about 20% of my positions in both WFC and BAC yesterday  just to delever a bit and bring my bet on US banks back to a percentage of the portfolio I'm comfortable with but I see no reason to sell more meaningfully since none of the key events of the thesis have played out yet (Scharf showing meaningful progress has been made, asset cap removal, divi/buyback increase).

In my experience, every time I have assumed upcoming good news were already in a stock price I ended up selling too early and the shares did pop on the good news... So I'm sitting on my hands with this one. Let's see!

Edited May 17, 2021 by WayWardCloud