“The Buffett Effect”

From the WSJ:

One underappreciated factor adding to the selling in global markets is the Federal Reserve’s action against Wells Fargo last week, which helped erase $29 billion from its market value.

With Warren Buffett controlling 9.4% of the bank through Berkshire Hathaway, the fact that retail investors aren’t safe from a bear market is probably dawning, says Eddy Elfenbein, a Washington-based portfolio manager and editor of the blog Crossing Wall Street.

“Look, if Grandpa Capitalist is not safe here then where are we?” he said retail investors seem to be asking themselves.

Mr. Elfenbein had a doctor’s appointment on Monday afternoon, but skipped it and remained glued to his Twitter feed and laptop once the market started dropping. The only time he could pull himself away from his computer was later in the evening when he grabbed a sandwich, he said.

Posted by Eddy Elfenbein on February 6th, 2018 at 1:34 am

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