Berkshire Hathaway sold almost all of its shares in one of the largest US banks, Wells Fargo. The 31-year-old investment was among its most successful before the bank was rocked by customer scandals, Economictimes reports.
Buffett began investing in Wells Fargo in 1989 and over the years acquired a 10% stake. Berkshire Hathaway has spent $ 12.7 billion on these shares.
Earlier this week, however, it became clear that he owned shares in the bank worth $ 26.4 million. For comparison, in January 2018, its share was estimated at 32 billion dollars.
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The bank’s reputation has been severely damaged by a number of revelations that employees have been forced to open bank accounts for customers without their knowledge, charged unnecessary mortgage fees and persuaded customers to take out car insurance that they did not need.
More than a year ago, Warren Buffett said Wells Fargo’s employee incentive system was “stupid” and the bank had failed to control the scandal and its aftermath.
Berkshire Hathaway holds stakes in other US banks, including Bank of America.
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