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Don't Be Fooled by What You Hear About Buffett

Warren Buffett's move out of an $8.5 billion municipal-bond credit default swap position (he was betting against widespread defaults) has some wondering about the state of the municipal-bond market. It also has one commentator asserting that Buffett is as much a trader as he is a long-term investor. Fool analyst Anand Chokkavelu takes issue with that, arguing that the bulk of Berkshire Hathaway's $400 billion-plus balance sheet is invested in fully owned businesses or in long-held shares of public companies including Coca-Cola and Wells Fargo. He also notes that the "trades" Buffett makes are longer-term in nature and at the edges.

Anand explains in the following video.

Buffett holds quite a bit of bank stock. Based on position size, Wells Fargo is his favorite. For a small, under-the-radar bank that compares favorably with Wells, check out our free report, "The Stocks Only the Smartest Investors Are Buying." You can learn the name of the stock, and more, in our exclusive free report. Just click here to keep reading

Anand Chokkavelu owns shares of Wells Fargo and Berkshire Hathaway and warrants on Wells Fargo. Andrew Tonner owns shares of Wells Fargo. The Motley Fool owns shares of Berkshire Hathaway, Coca-Cola, and Wells Fargo and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services recommend Berkshire Hathaway, Coca-Cola, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Related Tickers

10/21/2016 11:03 AM
BRK-A $214540.00 Down -2435.00 -1.12%
Berkshire Hathaway… CAPS Rating: *****
BRK-B $143.03 Down -1.46 -1.01%
Berkshire Hathaway… CAPS Rating: *****
KO $41.80 Down -0.13 -0.30%
Coca-Cola CAPS Rating: ****
WFC $45.11 Up +0.18 +0.40%
Wells Fargo CAPS Rating: ****