Buffett bought 302.6 million shares of WFC in the first quarter. According to the article: Wells Fargo shares closed at $24.87 today on the New York Stock Exchange after falling below $9 in March. Buffett said he was speaking to a class the day the shares dropped that low and told students that, at such a price, âIf I had to put all of my net worth into stock, that would be the stock.â Berkshire Added to Wells Fargo Stake as Shares Fell (Update2) Bloomberg News - May 15, 2009 By Erik Holm http://www.bloomberg.com/apps/news?pid=20601087&sid=aaOQ2xQZIo_U&refer=home# May 15 (Bloomberg) -- Billionaire investor Warren Buffettâs Berkshire Hathaway Inc. added to holdings of lenders Wells Fargo & Co and U.S. Bancorp in the first quarter as the shares traded at their lowest prices in more than a decade. Buffettâs firm, the largest shareholder in San Francisco- based Wells Fargo, increased its stake in the bank by about 4.3 percent in the first quarter to 302.6 million shares, Berkshire said in a regulatory filing today disclosing its U.S. stock portfolio as of March 31. Omaha, Nebraska-based Berkshire increased its holding of U.S. Bancorp by about 2.2 percent. Banks that attract deposits at low rates were undervalued in the first quarter because investors wrongly believed that the entire industry was hobbled by risky bets and reckless lending, Buffett said at Berkshireâs annual meeting earlier this month. The KBW Bank Index fell 37 percent in the first quarter. âAll banks arenât alike by a long shot, and in our view Wells Fargo, among the large banks, has some advantages the others do not,â said Buffett, Berkshireâs chief executive officer and chairman, at the companyâs May 2 annual meeting. Wells Fargo shares closed at $24.87 today on the New York Stock Exchange after falling below $9 in March. Buffett said he was speaking to a class the day the shares dropped that low and told students that, at such a price, âIf I had to put all of my net worth into stock, that would be the stock.â âWhere His Mouth Isâ Buffett is âputting his money where his mouth is,â said Gerald Martin, a finance professor at American Universityâs Kogod School of Business in Washington who has studied Berkshireâs investing history. âI donât think heâs ever been this transparent about what heâs doing.â Known as the âOracle of Omaha,â Buffett has become a cult figure among investors, drawing a record 35,000 people for the firmâs shareholders meeting this year. Mutual funds and individuals mimic the stock picks to duplicate Buffettâs success, and a study co-authored by Martin in 2007 found that using this strategy for 31 years would have delivered annualized returns of about 25 percent, double the Standard & Poorâs 500. Berkshire spent $624 million on stocks in the quarter, and sold shares of companies including oil producer ConocoPhillips for $739 million, Buffett said in a separate filing last week. The decline in ConocoPhillips stock contributed to Berkshireâs worst quarterly loss in at least two decades as Buffett, 78, worked to recover from what he called his âmajor mistakeâ of buying the shares with oil prices near their peak. Johnson & Johnson Buffettâs firm also added to holdings of Johnson & Johnson, the worldâs largest maker of health-care products, in the period after selling shares in the New Brunswick, New Jersey-based company in the fourth quarter. Buffett said in February he reluctantly sold J&J shares near the end of 2008 to help fund investments in $8 billion of preferred shares and warrants of General Electric Co. and Goldman Sachs Group Inc. Berkshireâs holding of J&J expanded 14 percent in the three months ended March 31 to 32.5 million shares. The increased stake falls short of the 61.8 million shares Berkshire held at the quarter ended Sept. 30. J&J sold for an average of about $60.10 in the last three months of 2008 and $54.65 in the first three months of this year. The stock closed at $55.41 today. âIt probably got down to where he couldnât pass it up,â Martin said. Berkshire increased its stake in Union Pacific Corp., the second-largest U.S. railroad, by 7.3 percent to 9.6 million shares. Berkshire is the largest shareholder in that firmâs larger rival, Burlington Northern Santa Fe Corp. Nalco, UnitedHealth Berkshire also increased its stake in Nalco Holding Co., the worldâs biggest maker of water purification equipment, by 14 percent to 32.5 million. Buffettâs company first disclosed the investment when it released the U.S. portfolio data for Dec. 31. Berkshire cut its stake in UnitedHealth Group Inc., the top U.S. health insurer by sales, by 29 percent to 4.5 million shares. Buffettâs firm also reduced the holding in the fourth quarter. Don Nathan, a spokesman for Minnetonka, Minnesota-based UnitedHealth, declined to comment. The amount invested in equities was the lowest since at least 2005 and about one-fifth of Berkshireâs average over the 16 prior periods, reflecting Buffettâs strategy of focusing on fixed-income holdings to gain yields as high as 15 percent. Berkshire spent $4.9 billion on fixed-maturity securities and $3.1 billion on âother investmentsâ in the first quarter, according to a regulatory filing. The S&P 500 Index dropped 12 percent in the period. CarMax Buffett, named the worldâs second-richest person by Forbes magazine, makes most of the investment decisions at Berkshire, while Lou Simpson, 72, manages the portfolio for car-insurance unit Geico Corp. Buffett has cautioned against assuming all moves in the equity portfolio are his. Berkshire slashed holdings of CarMax Inc., the biggest U.S. used-car dealer, by 32 percent to 12 million. Investors canât always be certain they have full information on Berkshireâs stock holdings because Buffett often receives U.S. Securities and Exchange Commission permission to delay disclosure to avoid copycat investing. Todayâs filing only lists equities traded on U.S. exchanges, valued at $40.9 billion as of March 31. Buffett discloses other holdings in the companyâs annual report and filings with non-U.S. regulators.