Warren Buffet speaks with CNBC in the lead up to the Berkshire Hathaway Annual Meeting. He talks a bit about stress tests and Citigroup. When asked about Wells Fargo, he says he administers his own stress tests and that Wells passes “with flying colors.”
He also uses an analogy of a commodities producer selling copper for $2.00, but then must accept $1.00 for its copper. If your production costs are $1.00, that is tolerable. If they are $1.50, not so much. Wells, he says, is better situated in terms of ‘raw materials costs’ than any large bank.
Take a look.