When It Comes to JPMorgan, Warren Buffett Isn’t Buying the Spin from the Fed and the Street

When a storied investor like Warren Buffett is dumping what the Street is pumping, it’s never a good sign.

By Pam Martens and Russ Martens of Wall Street on Parade.

At his press conference on June 10 of this year, Fed Chairman Jerome Powell said this about the U.S. banking system, which includes a little more than 5,000 federally insured banks but is dangerously concentrated in the hands of just five mega banks on Wall Street.

“You have a banking system that is so much better capitalized, so much stronger, better aware of its risks, better at managing its risks, more highly liquid. You have all of those things and they’ve been lending, they’ve been taking in deposits, they’ve been a source of strength in this situation.”

Warren Buffett, Chairman and CEO of Berkshire Hathaway, is apparently not buying the story that Powell is attempting to sell to the public. According to Berkshire Hathaway’s 13F filing with the Securities and Exchange Commission for the quarter ending June 30, 2020, Buffett dumped 35.5 million shares of JPMorgan Chase or 61.5 percent of his 57.7 million share holding in the bank.

Buffett also dumped the remainder of his position in Goldman Sachs, which amounted to 1.9 million shares. Buffett had already exited 84 percent of his shares of Goldman Sachs in the first quarter of the year.

Making Buffett’s massive dump of JPMorgan Chase even more embarrassing was the headline in Barron’s on January 3 of this year which blared: Why Warren Buffett Loves JPMorgan Chase Stock. Equally untimely, a well-known Wall Street bank analyst, Mike Mayo of Wells Fargo, reiterated his buy rating on JPMorgan Chase on March 31.

According to MarketBeat, 15 Wall Street analysts have buy ratings on the stock of JPMorgan Chase. Goldman Sachs issued a buy rating on JPMorgan Chase on July 24.

When a storied investor like Warren Buffett is dumping what the Street is pumping, it’s never a good sign

Continue reading the article

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s