Warren Buffett’s Performance in 2021: 5 Best Stock Picks

1. Wells Fargo & Company (NYSE:WFC) 

Number of Hedge Fund Holders: 88  

Gain in 2021: 62%   

Wells Fargo & Company (NYSE:WFC) was once one of the largest holdings in the Berkshire Hathaway portfolio. Buffett has, over the past few months, steadily reduced the holding, selling off as much as 90% of it in 2020. At the end of September, Berkshire Hathaway held less than a million shares in Wells Fargo & Company (NYSE:WFC). At the peak of his bull calls on the bank, Buffett had held close to $479 million shares of Wells Fargo & Company (NYSE:WFC). 

Hedge funds are largely bullish on Wells Fargo & Company (NYSE:WFC) as a new year begins. At the end of the third quarter of 2021, 88 hedge funds in the database of Insider Monkey held stakes worth $6 billion in Wells Fargo & Company (NYSE:WFC). 

In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the fund said:

“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.” 

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