Warren Buffett Held Wells Fargo Stock for More Than 30 Years Before Selling It. Here's the Lesson for Bank Stocks.

Warren Buffett's Berkshire Hathaway held Wells Fargo stock for nearly 30 years starting in 1989, but exited the position in 2022 following the bank's 2016 phony accounts scandal. While CEO Charlie Scharf successfully turned the bank around with operational improvements and regulatory compliance, Buffett had already sold due to frustration with the board and uncertainty about the turnaround timeline. The case illustrates the importance of reputation in banking and the challenge of identifying viable long-term turnaround opportunities.