Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of banking giant Citigroup
So what: Today, Citigroup announced that it hired Kathryn Dinkin away from Wells Fargo
OK, the real reason that Citi's shares are soaring today is the banking industry's huge news: Berkshire Hathaway's
Now what: By tomorrow, everyone will have forgotten about Buffett's B of A investment. That may be a bit of an exaggeration, but the stock market has an extreme "what have you done for me lately" attitude and an event like this is unlikely to have a long-lasting effect. That's not to mention the fact that everything is going to be overshadowed tomorrow by what Federal Reserve Chairman Ben Bernanke does or doesn't say in his speech in Jackson Hole, Wyo.
Is it significant that Warren Buffett invested in Bank of America? I think Buffett's a sharp investor, so I'd say "yes." But is this a good reason to rush to buy Citigroup stock? Nope, you better have some better reasons on your list.
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The Motley Fool owns shares of Berkshire Hathaway, Bank of America, and Citigroup. The Fool owns shares of and has created a ratio put spread position on Wells Fargo. Motley Fool newsletter services have recommended buying shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Matt Koppenheffer owns shares of Bank of America and Berkshire Hathaway, but does not have a financial interest in any of the other companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.