Wells Fargo & Company

“Wells Fargo is a large but below-average quality banking franchise trading at a fair price for mediocrity: ROTCE of 13.4% lags peers, an active Fed asset cap structurally prevents balance-sheet compounding, and a governance legacy of consumer abuse elevates regulatory risk above any peer in the large-cap U.S. bank universe. The ~9% annualized base-case return is adequate but not compelling, and the asset-cap removal catalyst — while potentially transformative — has been 'imminent' for years with no investor control over timing. Berkshire's full exit is a sobering signal from the most patient investors in history. New capital is better deployed elsewhere; existing holders should hold for buyback yield and optionality but not add.”