Warren Buffett: Banks are 'very attractive compared to most other securities'

Berkshire Hathaway's chairman and CEO Warren Buffett told CNBC's Becky Quick on Monday that he feels "very good about the banks we own. They're very attractive compared to most other securities I see."

Berkshire Hathaway chief Warren Buffett called out bank stocks as one of his favorite equity holdings in the U.S. market.

“I feel very good about the banks we own. They’re very attractive compared to most other securities I see,” Buffett told CNBC’s Becky Quick on “Squawk Box” on Monday.

Banks are a big part of Berkshire Hathaway’s portfolio, which is worth more than $248 billion.

Goldman Sachs, JPMorgan Chase, Bank of America, BNY Mellon, and U.S. Bancorp were all among Berkshire’s 15 largest stock holdings.

“Banking is a good business if you don’t do dumb things on the asset side, I mean, basically,” Buffett said. “The banks we own earn between ... 12% and 16% or so on net tangible assets. That’s a good business, that’s a fantastic business against the long-term bond at 2%.”

Buffett highlighted banks buying back stock as a top reason for why he likes the sector. For example, Bank of America “is buying in a lot of stock every year,” Buffett said, “so our ownership of Bank of America this year will probably go up 7 or 8% without us spending a dime.”

“I’d like to own any business, any good business, where my ownership just goes up 7 or 8% every year without me spending any money and, on top of it, I get a dividend,” the Berkshire chairman and CEO added in the interview from the conglomerate’s headquarters in Omaha, Nebraska.

For more Warren Buffett, check out Squawk Pod:




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[Je.rone_]

*I was thinking banks were attractive as well, maybe I should be a portfolio manager at Berkshire *

[rraych]

I wonder what Mr Buffett would say today about banks

[shaifullahfirhakim]

I Want You Talk About Me For Everyone.. Because I Want Like My Ideas 💡Others Diving… I Know Others Can Diving Wrong 😑 I Hate Live Temporary.. U Want Me Down??? I Want Normal Live.. And Who I Am …

[marcosmimenza]

Restart economy by including IRS, FDA, FED & Health Care in a limitless Universal Basic Income Cell Phone Auto leveling Card that will also reduce corruption, problem solved.

[anon]

Follow what he do, not what he say
as of 2Q2020 he sold banks and bought gold miner when he is known for bashing gold