Author Topic: WFC - Wells Fargo  (Read 342618 times)

RuleNumberOne

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Re: WFC - Wells Fargo
« Reply #980 on: June 12, 2019, 09:36:23 PM »
- A CEO is not that important for WFC. It is not a disguised hedge fund like Bear or Lehman.

- A $40 million CEO is not twice as good as a $20 million one. Even Ajit Jain was paid $10 million 2-3 years ago. Buffett prefers CEOs who are not greedy. He regards greed as a red flag, especially in banking/insurance.

- If a CEO was important, Buffett would have found one by now. This is a very boring business that changes very little from decade to decade.

I bet a forever-shareholder like Buffett likes the current situation:
    - save on CEO compensation
    - buyout other shareholders everyday at well below intrinsic value.


Spekulatius

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Re: WFC - Wells Fargo
« Reply #981 on: June 13, 2019, 03:52:32 AM »
I donít think that saving on CEO comp is the desire here, but paying a huge salary and signup bonus would be bad optics and probably lead to another round of bashing.

WFC may not be able to get the CEO they want with the resume they are looking (which minimizes the reputational risk for the board in charge of search) for because of the above.

Bashing a company when itís down is a fun sport for politician or those aspiring to become one. Itís just noise though.
To be a realist, one has to believe in miracles.

vinod1

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Re: WFC - Wells Fargo
« Reply #982 on: June 13, 2019, 06:25:08 AM »
The board should be looking for a competent CEO who is

- female
- minority black/native american/etc
- preferably with some uplifting story
- bonus: a recent personal tragedy

The CEO would be untouchable and it solves the real problem WFC faces.

Vinod
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Dalal.Holdings

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Re: WFC - Wells Fargo
« Reply #983 on: June 13, 2019, 06:55:18 AM »
The board should be looking for a competent CEO who is

- female
- minority black/native american/etc
- preferably with some uplifting story
- bonus: a recent personal tragedy

The CEO would be untouchable and it solves the real problem WFC faces.

Vinod

Hope this is satire...maybe they should hire someone from GEís board during Immeltís days.  ::)

Buffett thankfully (at least with public comments) seems to be steering board away from Wall St hogs. This is a bread & butter bank. No CEO for a few mo is not as devastating as headlines/Dimon would have you believe. Not sure how much Buffett loves the share price dip as he becomes a forced seller the more shares WFC buys back at low prices (meaning more shares he has to sell). Seems like a good deal for other shareholders though.

woodstove

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Re: WFC - Wells Fargo
« Reply #984 on: June 13, 2019, 07:55:42 AM »
Isn't there some rule change in the works, that would allow Berkshire's portion to go above 10 percent, if there was a disclaimer of influence (sort of non-voting agreement)?  In which case, concern re forced selling at low prices to keep under 10 percent threshold would disappear.

I think of WFC being in a sort of semi-runoff right now, which means still a good deal, in fact perhaps a very good deal considering.  Also very likely to exit runoff with a lot of internal improvements for time in port for refit (to mix analogies).

coc

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Re: WFC - Wells Fargo
« Reply #985 on: June 13, 2019, 08:04:56 AM »
Isn't there some rule change in the works, that would allow Berkshire's portion to go above 10 percent, if there was a disclaimer of influence (sort of non-voting agreement)?  In which case, concern re forced selling at low prices to keep under 10 percent threshold would disappear.

I think of WFC being in a sort of semi-runoff right now, which means still a good deal, in fact perhaps a very good deal considering.  Also very likely to exit runoff with a lot of internal improvements for time in port for refit (to mix analogies).

Where did you hear about this amendement?

gfp

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Re: WFC - Wells Fargo
« Reply #986 on: June 13, 2019, 08:18:27 AM »
They were asked about it at the annual meeting.  Charlie didn't hesitate in saying 'yes,' if they were allowed to they would at least allow their Wells stake to drift above 10%.  Barrons had run an article as well -
https://www.barrons.com/articles/berkshire-could-lift-stakes-in-several-big-banks-under-proposed-fed-rule-change-51556217117

Isn't there some rule change in the works, that would allow Berkshire's portion to go above 10 percent, if there was a disclaimer of influence (sort of non-voting agreement)?  In which case, concern re forced selling at low prices to keep under 10 percent threshold would disappear.

I think of WFC being in a sort of semi-runoff right now, which means still a good deal, in fact perhaps a very good deal considering.  Also very likely to exit runoff with a lot of internal improvements for time in port for refit (to mix analogies).

Where did you hear about this amendement?

sleepydragon

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Re: WFC - Wells Fargo
« Reply #987 on: June 13, 2019, 08:39:01 AM »
The board should be looking for a competent CEO who is

- female
- minority black/native american/etc
- preferably with some uplifting story
- bonus: a recent personal tragedy

The CEO would be untouchable and it solves the real problem WFC faces.

Vinod

Hope this is satire...maybe they should hire someone from GEís board during Immeltís days.  ::)

Buffett thankfully (at least with public comments) seems to be steering board away from Wall St hogs. This is a bread & butter bank. No CEO for a few mo is not as devastating as headlines/Dimon would have you believe. Not sure how much Buffett loves the share price dip as he becomes a forced seller the more shares WFC buys back at low prices (meaning more shares he has to sell). Seems like a good deal for other shareholders though.

Thatís why I think if you are a Berkshire shareholder you ought to buy some WFC too

Foreign Tuffett

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Re: WFC - Wells Fargo
« Reply #988 on: June 17, 2019, 02:25:28 PM »
I have been trying to locate research I stumbled on earlier this year that highlighted the cost of funding advantages the big bank branch networks have over online-only branchless banks. IIRC it was written by the manager of a small investment fund of some kind.

Does this sound familiar to anyone? I remember being quite impressed with the reasoning, so I'd really like to locate it if I could. I would provide more detail, but that's more-or-less all I can recall.

John Hjorth

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Re: WFC - Wells Fargo
« Reply #989 on: June 17, 2019, 03:02:41 PM »
The board should be looking for a competent CEO who is

- female
- minority black/native american/etc
- preferably with some uplifting story
- bonus: a recent personal tragedy

The CEO would be untouchable and it solves the real problem WFC faces.

Vinod

Vinod, I just have to ask :

Are you serious here?
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