Skip to main content

NEW YORK (TheStreet) -- Wells Fargo (WFC) - Get Wells Fargo & Company Report stock is slumping by 0.60% to $48.40 in early-morning trading on Tuesday, even though Warren Buffett's Berkshire Hathaway (BRK.B) announced that it has increased its ownership stake in the financial company to nearly 10%.

Berkshire owns 506.3 million shares of Wells Fargo, valued around $24.7 billion, according to SEC filings, Reuters reports.

The stake has increased to 9.8% as of December 31 from 6.5% as of the end of 2009. 

The Federal Reserve typically exercises special oversight when investors acquire 10% ownership in a bank, unless they pledge that they do not intend to influence the company.

Berkshire's Wells Fargo shares "were not acquired and are not held" with the goal of altering the bank's operations, Buffett said in a filing, Reuters adds.

Scroll to Continue

TheStreet Recommends

(Wells Fargo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Wells Fargo's strengths such as its revenue growth, expanding profit margins and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: WFC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

Image placeholder title