The following is an excerpt from Antoine Gara | September 15, 2016 | Forbes.com |
When Warren Buffett exited an ultra-successful investment in Procter & Gamble PG +1.21% (the acquiror of Gillette ), he picked up Duracell, the iconic battery business. When the ‘Oracle of Omaha’ sold his stock in the Washington Post’s parent company Graham Holdings GHC -0.63% after a hundred-fold gain, he took control of Miami-area broadcast station WPLG.
Berkshire Hathaway BRK.B +% acquired Phillips 66's PSX +2.77% specialty products division in 2013 in exchange for its 4.5% stake in the refining giant. The conglomerate scooped up Commercial Casualty Insurance, International American Group and a trove of cash when exiting its 16.3% stake in White Mountains Insurance WTM +0.48% in 2008. These types of moves are worth thinking over as Wall Street awaits a signal from Buffett on how he will respond to a fake account scandal that’s engulfed Well Fargo.
Last week, the Consumer Finance Protection Bureau accused Wells Fargo bankers of opening 1.5 million unauthorized deposit accounts and making 566,443 credit card applications in an effort to bolster their cross selling ratios. While Wells Fargo is refunding some $2.6 million for these alleged abuses, it agreed to pay a $185 million fine. The scandal has cut at the heart of Wells Fargo’s image as America’s safe and ethical bank, and it has reportedly stemmed a number of criminal investigations.
For more visit: Forbes.com