Warren Buffett’s Berkshire Hathaway is a huge backer of US banks with nearly $100 billion in financial services stocks, according to The Wall Street Journal.
Around one-fifth of Berkshire Hathaway's holdings are in financial-service stocks. Warren Buffett has long been a supporter of banks and is confident in the US economy. Berkshire Hathaway has about $488 billion in holdings. Financial services made up 12% of Berkshire’s holdings at the end of 2010, which means Buffett has been investing in this sector even more heavily in recent years.
Berkshire has shares of banks, payment companies, insurers, and ratings firms. Banks also have been paying rising dividends which allows Berkshire to use that money for other investment opportunities.
Declining interest rates and fear of an economic slowdown has caused bank shares to slide in the past few weeks. Seven of Berkshire's top 10 stock holdings were financial companies like Wells Fargo, Bank of America, American Express, and Moody’s Corp.