Wells Fargo and Company (WFC)

[Prudent Capitalist]

Agree that Buffett will ride out this rough spot with WFC. Large holding, and BH just recently applied to up it stake here with WFC. His mantra is to buy heavy when there is blood in the streets. WFC is too strong a franchise to go down over this, and while the scandal is very bad, it represents just a small gnat and glitch in the big picture for Wells Fargo.

The execs rightfully took the fall on this one, but no clear evidence, IMO, that Stumpf or Carrie Tolstedt actually had any knowledge that employees were actually opening bogus accounts to make it appear they were meeting their aggressive sales and cross-selling goals.

The downside is priced into the shares at this point, having dropped approximately 20% from the firestorm and scandal.

In short, this is a great buying opportunity in WFC shares down here.