Four Warren Buffett Favorites You Ought To Own: International Business Machines Corp. (IBM), Wells Fargo & Co (WFC)

Wells Fargo & Co (NYSE:WFC) is the fourth largest bank in the U.S. by assets and the largest bank by market cap. It is the second largest bank by deposits, home mortgage servicing, and debit cards. This San Francisco-based behemoth fared the best among big banks during the financial crisis. For all of last year, revenue grew 6%, and earnings grew by 19% as loan charge-offs returned to pre-2007 (recession) levels. Wells Fargo & Co (NYSE:WFC) shares trade at a cheap 10 time earnings and yield a bankable 2.83%. Berkshire presently owns 8.7% of the company, a percentage that is likely to grow.

While we all can’t afford to buy shares of Berkshire Hathaway, we can emulate the conglomerate by buying the above-mentioned securities. Buffett didn’t get to be one of the wealthiest people in world and among the most admired investors without discipline and doing his research. The most important thing Buffett adheres to in any investment decision is one we should all heed.  It’s his two rules of investing–Rule No. 1: never lose money. Rule No.2: Never forget rule No. 1.

The article Four Warren Buffett Favorites You Ought To Own originally appeared on Fool.com and is written by Diane Alter.

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