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NYSE:WFC

Wells Fargo (WFC)

82.40
+0.20 (0.24%)
as of Jun 18, 2026, 11:02:29 pm Market Open.
172 watching
0
COMMENT

There continues to be a hangover over the falsification of client records a few years ago for WFC-N. It will go away over time and Warren Buffet still owns his shares. He would tie into a higher yield play. He would lean towards Bank of America.

DON'T BUY
Don't buy any US stocks for the dividend--you get taxed and suffer currency fluctuation. But he likes US banks because there's growth. That said, he wouldn't buy WFC.
HOLD
Dividend safe? He bought this when it was under temporary trouble last year. It was involved in front running customers and other issues and still do face sanctions. It sells at a discount to other US banks. The dividend is safe, he thinks. Not much downside here.
DON'T BUY
BAC vs. WFC He sold WFC after briefly owning it, after hearing of its corporate malfeasance. Since, then, WF stock price has treaded water. The US Fed did an about-face by saying they will keep rates flat. So, he pared down his US bank holdings including BAC.
SELL
There are more issues with this one than the others. The Fed is now monitoring them and have them under restrictions. He sold within 10 days of the news items about the pervasiveness of the problems. There are other companies you can go to that don’t present the issues this one does.
COMMENT
BAC vs. Wells Fargo Both are well-run, with BAC trading at a slightly lower multiple, so he favours BAC. Also, Wells has a scandal to still deal with it and management issues, which is why he's stayed away from it. A rising yield curve boosts all the US banks, so that's's now a headwind as rate increases slow down. Both benefit from a strong US economy.
DON'T BUY
This is lagging their peers in the US financial space. If interest rates increase, earnings will grow. He thinks their reputation still needs some improving before it brings back investors.
COMMENT
He owns three US banks and one Canadian. He owns WFC-N instead of BAC-N, when it the market became worried about management changes there that created an oversold situation. BAC-N is a fine one as well.
PAST TOP PICK
(A Top Pick May 31/18, Down 12%) Exit level was $50.50. Needs to move above $48.20 before you buy. There are opportunities other than banks in the market right now.
PAST TOP PICK
(A Top Pick Jul 24/18, Down 11%) Just added some today. It had performed better than other banks in the US until just recently. A great opportunity to pick up the stock. They are working on their issues. Yield is 3.5% and it is trading at 12 times earnings. Their hands are tied behind their back but he thinks that is going to end in the second half of 2019 and they are showing good growth and profitability. You can't go wrong.
BUY
They've had a few years of bad press, including employees doing fraudulent selling practices. That said, WFC has recovered well. A good bank, though he owns other American ones.
DON'T BUY
It is a big bank but has more regulatory issues than the others. He would not own any of the right now. See Utilities for yield. (Analysts’ price target is $62.00)
TOP PICK
The forth biggest bank in the US and the second biggest market cap in the word. Previous management sold inappropriate products to customers so they are in the penalty box with regulators. It has a great franchise, growth prospects look good but sells at a discount. He uses this as an opportunity to buy the stock. He refers the banking environment in the US. They are much more sensitive to rising interest rates, in a positive sense, to Canadian banks. (Analysts’ price target is $62.43)
PAST TOP PICK
(A Top Pick Apr 10/18, Up 4%) They have not quite recovered from earlier this year. It is in the penalty box. He does not have big anticipation for it to go one way or the other.
BUY

Model price of $54.93, about 7% lower than what it is trading at. This one never got cheap enough for him to buy it. There is value elsewhere, see his Top Picks.

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