Warren Buffett: Wells passes my own stress test

| 2 May 2009 13:36

Warren Buffet speaks with CNBC in the lead up to the Berkshire Hathaway Annual Meeting.  He talks a bit about stress tests and Citigroup.  When asked about Wells Fargo, he says he administers his own stress tests and that Wells passes “with flying colors.”

He also uses an analogy of a commodities producer selling copper for $2.00, but then must accept $1.00 for its copper. If your production costs are $1.00, that is tolerable. If they are $1.50, not so much. Wells, he says, is better situated in terms of ‘raw materials costs’ than any large bank.

Take a look.


avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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