Updated to reflect additional information on buybacks and analyst ratings.
NEW YORK ( TheStreet) -- In February, Warren Buffett made waves when he explained why an IBM (IBM) share lull would benefit his $10.3 billion stock holding. After Wells Fargo (WFC) and Bank of America (BRK.A) passed Tuesday's Federal Reserve stress tests, Buffett's point may also apply to his biggest bank investments.
In his annual letter, the investment guru detailed his math on how to gain on stock swoons and share repurchases, using his investment in IBM as an example. After Wells Fargo boosted its dividend 83% and indicated accelerated buybacks on the heels of stress test results, Buffett's largest bank holding may have a similar thesis, with a relevance to other Berkshire Hathaway (BRK.A) investments in Bank of America, American Express (AXP) and U.S. Bancorp (USB).
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