Warren Buffett's Thoughts on Banking

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics across the investing world.

Warren Buffett has held significant amounts of bank stock and securities throughout the financial crisis. A few months ago, he added an investment in Bank of America (preferred shares plus warrants). In his latest shareholder letter, he gives positive outlooks for both Wells Fargo (a long-time common stock holding) and Bank of America as well as the banking industry as a whole. Anand explains.

The financial heavies are getting a lot of press these days. And much of it is negative. But there's one small bank that's flying under the radar. It has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Buffett would probably be interested in if he could still invest in small banks, just click here.

At the time thisarticle was published Anand Chokkavelu, CFA, owns shares of Berkshire Hathaway, Bank of America, JPMorgan Chase, BAC (LEAPS), and Wells Fargo. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, JPMorgan Chase, and Wells Fargo, and has the following options: short APR 2012 $21.00 puts on Wells Fargo and short APR 2012 $29.00 calls on Wells Fargo.Motley Fool newsletter services recommendBerkshire Hathaway. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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