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Warren Buffett further trimmed his position in the bank stocks

on Sep 5, 2020
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  • Well-known investor, Warren Buffett, continues to pull his fortune away from the US banking scene.
  • The investor previously invested in Barrick Gold and Japanese trading firms.
  • Now, he also sold 100 million shares of Wells Fargo, apparently expecting the price to fall further.

Warren Buffet and his company, Berkshire Hathaway, recently cut their position on Wells Fargo. The move saw the sale of 100 million Wells Fargo shares, as Buffett continues to move away from the damaged US economy.

Warren Buffett just sold 100 million Wells Fargo shares

Warren Buffett, the legendary investor known for his nickname ‘Oracle of Omaha,’ has been making headlines quite often recently. The expert investor, who recently turned 90, first made the news when he decided to invest in Barrick Gold, rather than the stocks of major banks and companies, as he usually did in the past.

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Then, Buffett started investing in Japanese companies, rather than the local, US firms. The two moves inspired a lot of speculation, clearly indicating that Buffett is moving away from the damaged US economy, and seeking investments in foreign firms, gold, and alike. Some even suggested that Bitcoin might be the next on his list.

Buffett’s newest move once again made headlines, as it confirms the speculators’ suspicions of him cutting loose everything that might endanger his wealth in the near future.

He, and his company Berkshire Hathaway, just sold 100 million Wells Fargo shares. This is a major move, since Berkshire, at one point, held as much as $32 billion in equity in Wells Fargo. Now, it is estimated that it only holds $3.36 billion, or 3.3%.

Buffett’s focus on gold makes a bull case for Bitcoin

Buffett’s new investment decisions have attracted a lot of attention, as he always stressed the importance of cash flow and value investing. He spent his life investing in businesses that had stable, predictable operations. This brought consistent profitability, and his business model made a lot of sense over the years.

Now, however, the COVID-19 pandemic severely damaged the US economy, and Buffett seems to have decided to trim his positions and change his approach.

He still did not go for Bitcoin, as far as anyone knows. Instead, he put his money into Barrick Gold, thus decreasing the exposure to the US banking sector.

But, even the investment in gold was enough to fuel the bull case of BTC, as many see BTC as digital gold, and expect it to become the next store of value.