4 Reasons Warren Buffett Loves Wells Fargo More Than Any Other Stock

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Historically, Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB) — the conglomerate holding company run by Chair and CEO Warren Buffett and Vice Chair Charlie Munger — has achieved the rare and elusive feat of beating the market. The per-share book value of Berkshire Hathaway has increased more quickly than the S&P 500 equity index for every five-year period since 1965, boasting a compounded annual gain of 19.7 percent compared to 9.4 percent for the market, including dividends.

The track record is nothing short of astonishing, and it has earned Buffett a legendary reputation that would seem fictitious if it weren’t backed up by data. Research into Buffett’s investing strategy conducted by the National Bureau of Economic Research indicates that far from simply being lucky, Berkshire Hathaway has managed to produce outsize returns with minimal risk consistently for at least the past 30 years.

Buffett has done this by adhering to a fairly simple overarching strategy: Buy great companies (or stakes of those companies) at good prices. The value investing paradigm, first championed by Benjamin Graham and David Dodd at the Columbia Business School, which Buffett attended, saturates Buffett’s decision-making process.

Investors large and small turn to Buffett and the philosophy he champions for guidance in their own investment decisions. While playing follow the leader is generally not a winning strategy, there is something to be said for taking a look at the big investments Buffett makes. Here’s a look at his largest holding, Wells Fargo (NYSE:WFC).

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