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Lunch With Buffett: What Stock Would Be Written On The Piece Of Paper Today?


Viking
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Imagine that you won the coveted lunch with Buffett auction and it was scheduled for today. After the small talk Buffett pulls a piece of paper out of his pocket; it has been folded. Your palms start to get a little sweaty as you reach accross the table...

 

What stock do you think Buffett would write on the piece of paper today?

 

My guess is Wells Fargo (WFC). It is trading below $24. Earnings at about $2.75. Dividend is about 2%. The company has started buying back shares. The company WANTS to return more cash to shareholders. The company looks to be 'best in class' in many of its businesses. The management team has done a wonderful job getting them through the post 2008 meltdown. Many of its competitors are wounded (some perhaps fatally). It is likely WFC will have the opportunity to buy more large assets on the cheap from Euro banks looking to shed assets and stabilize balance sheets. Large domestic competitors are distracted from manging their core businesses...

 

What do you think?

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