Berkshire Hathaway reported its Q3 holdings last week, and it looks like Warren Buffett’s laughing all the way to the bank: Half of Warren Buffett’s top 10 largest holdings are in the US banking industry.
BH purchased $13B worth of new bank stocks last quarter alone, bringing the firm’s total banking investments to $86B.
Here’s how that $86B breaks down:
- Bank of America $25.8B
- Wells Fargo $23.3B
- American Express $16.1B (17% stake)
- US Bancorp $6.6B
- Goldman Sachs $4.1B
- JPMorgan Chase $4B
- Bank of New York Mellon $4B
- M&T Bancorp $866m
- PNC $829m
- Synchrony Financial $647m
To put that in context, BH’s stake in Bank of America is the firm’s second largest holding (behind Apple at $56.9B).
Why is he banking on banks?
Because, theoretically, it’s a “forever business” — one that we’ll always need as long as traditional currency exists.
*Cue uproar from one million blockchain enthusiasts*
And, he’s managed to invest a massive amount of capital in a single industry without triggering the feds.
Aside from its American Express holding, all of BH’s investments are under 10% ownership to avoid regulatory oversight (The Motley Fool points out that it has special permissions from the Federal Reserve to own up to 25% of American Express).