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Warren Buffett top dividend stock picks last year – One he’s been dumping

Warren buffett top dividend stocks picks

Warren Buffet is a well-known veteran stock investor. His best-performing stock in 2021 was the bank he was bailing on. He has taught many how to avoid loss and earn consistently in the stock market. Do you want to know more about warren buffett top dividend stock picks? Dig in further to know more about the same.

Wells Fargo & Co. shares delivered 61% last year. That has outpaced other companies listed in the most recent public snapshot of Berkshire Hathaway Inc.’s portfolio. The above data is as of September 30, 2021. Bloomberg compiled data about the same and published it publicly. That also trounced the performance of Bank of America Corp. and Apple Inc. Both are the two biggest bets of the conglomerate. So, these are Warren Buffet’s top stock picks.

Berkshire’s plans

Warren Buffet’s Berkshire will give an updated look to investors at its holdings soon. The filings display that Wells Fargo’s rebound was a missed opportunity. However, the San Francisco-based bank was ranked as the best equity bet by market value for years. This is as per Berkshire’s stock portfolio. Buffet himself routinely praised the bank. Later, it struggled to resolve scandals. That led to Berkshire slashing its investment. That went down to 675,000 shares by September 2021. As of 2019, it was 323 million shares.

Wells Fargo’s part in Warren Buffet’s top stock picks

Wells Fargo’s stocks witnessed a change last year. That was when Charlie Scharf was trying to turn the lender around. The chief executive officer and his team also cleared the regulatory hurdles. As a result, the profit soared almost 10-fold. That went down dramatically in 2020. Despite having setbacks, Wells Fargo was the third-best performer in the KBW Bank Index of 24 major US lenders in 2021. However, it ranked the worst a year earlier.

Warren Buffet Top Dividend Stocks

For Buffet, the progress was very slow. He pulled back from the bank in 2017. That was almost after a year when the scandals began. This further accelerated during the pandemic. The reduction reflects Berkshire’s interest in Bank of America and divergence from Wells Fargo. As revealed in various statements, Warren Buffet has high ethical standards. He has also hinted at other considerations.

He had earlier warned Wells Fargo to not pick a CEO from Wall Street in 2019. The board chose Scharf at that time. The latter previously led Bank of New York Mellon Corp. He was also a former lieutenant to Jamie Dimon at JPMorgan Chase & Co. Charlie Munger is Buffet’s long-time business partner. He is also the vice-chairman of Berkshire. He also criticized Scharf for planning to run the bank from New York.

Berkshire’s decisions

A lot of Berkshire’s decisions changed after the pandemic erupted. It also pulled back from several financial firms. For instance, Berkshire cut stakes in JP Morgan and Goldman Sachs Group Inc. Its exposure to insurers, banks, and other financial firms also dropped. The drop was about 26% on a cost basis. This happened at the end of September 2022. Earlier, it was 37% at the end of 2019.

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