After government involvement the acquisition of Wachovia the Wells Fargo rating took a hit. As the companies AAA ranking feel it did not stop people from buying into Wells Fargo. The manager of Berkshire Hathaway, Warren Buffett, believes in the company long term future buy purchasing 12 million shares of Wells Fargo’s stock. Warren Buffet is one of the owners of one the most admired companies due to his honesty and success. Even though the mortgages may have set Wells Fargo back during the slowdown of the housing market the diversity of Wells Fargo in product offering helps the company to compensate for the mortgage crisis. But is Wells Fargo a company to be admired? Is Warren Buffet a person that we should be following?
I believe yes Warren Buffet and the Wells Fargo company made good decision that both benefited them and the economic times. Look at them now Warren Buffet one of the most successful men coming out of the 2009 market drop, as he said present downturn in the financial sector “poetic justice”. Should we all take Buffets approach to this economic time, “Buy American. I am”? Should we listen to the 2008 Forbes wealthiest man in the world estimated at 68 billion? I cannot answer that question for you but, the 68 billion dollars speaks louder then word. Yes all economies will go through cycles of ups and downs and always has. Economies are meant to bend and flex and what Buffet is doing is what all people should be doing to help the economic time buy not save. Saving money is not helping the business grow or help reestablish itself. Money needs to be cycling through the economy to keep it going, saving the money is yes benefiting us now but will hurt us in the long run. Don’t save spend, spending will speed up the economy, ask Warren Buffet and his 68 billion dollar net worth and growing.
Though Wells Fargo did make some mistakes during the credit crunch the government found it very important to keep this company up and running. Just as Warren Buffet the company of Wells Fargo kept spending money. Unlike other large banks and investment companies Well Fargo did not make that many bad decisions in the high risk loans to high risk borrowers. Also the diversity and the purchase of Wachovia allow the company to sneak buy the credit crunch just like Warren, Wells Fargo spent money during the economic down turn and yes took some loses. But look at them both now Wells Fargo is still around and operating and Buffet become wealthier as the days go on.