Wells Fargo Stock Will Be Worth A Lot More In 10 Years

&l;p&g;&l;img class=&q;dam-image ap size-large wp-image-806d0418ba4a44129f466489520d621a&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/806d0418ba4a44129f466489520d621a/960×0.jpg?fit=scale&q; data-height=&q;699&q; data-width=&q;960&q;&g; Warren Buffett, chairman and CEO of Berkshire Hathaway, smiles while playing bridge outside Berkshire-owned Borsheims jewelry store in Omaha, Neb., Sunday, May 6, 2018. On Saturday, tens of thousands of Berkshire Hathaway shareholders attended the annual Berkshire Hathaway shareholders meeting. (AP Photo/Nati Harnik)

It pays to listen to Warren Buffett in all his appearances over the Berkshire Hathaway stockholder weekend. On this morning&a;rsquo;s CNBC television appearance, Buffett made it succinctly clear he expected Wells Fargo stock to be worth a great deal more in the next 10 years than it does today when growth of the bank is restricted due to a long list of regulatory missteps and grievances.

Wells Fargo is limited by the Federal Reserve to its current $1.95 trillion assets until it cleans up activities that have endangered bank customers. Wells Fargo will only be allowed to grow again when &a;ldquo;robust and comprehensive reforms will be put in place to make certain the abuses do not occur again,&a;rdquo; the Fed has ruled. During this period, Well Fargo stock has been trading in a range close to $52 a share, while other large bank shares like JPMorgan Chase have considerably advanced. The current price-earnings ratio of WFC is only 12.5 times, far cheaper than the general market. Berkshire currently owns 497.7 million shares of WFC, or 9.65% of the bank.

What&a;rsquo;s more, even after aggressively adding more Apple shares to Berkshire position of about 5% of that company, Buffett glibly suggested, &a;ldquo;I&a;rsquo;d love to own 100% if it. I like very much the management and the way they act.&a;rdquo; News of Berkshire&a;rsquo;s additional Apple purchases has driven Apple shares well above $180 share in recent trading sessions. Munger also said, &a;ldquo;I wish we owned more of it. It&a;rsquo;s reasonably priced and has strong, very intelligent management.&q;

Over the weekend, Buffett said at the shareholders meeting that he wished now that he had decided to buy shares of both Google and Amazon&a;mdash;two other technological giants whose shares have been in great demand. In this sense, he is admitting that his aversion to tech stocks has cost him greatly in recent years. &a;ldquo;I underestimated Jeff Bezos ,&q; he admitted at one point. Buffett also bemoaned the fact that Berkshire did not buy a block of 15% of Costco when it had the opportunity to do so several years ago. Berkshire has a very small 1% position in Costco shares today.

Charles Munger, Buffett&a;rsquo;s partner at Berkshire, came out strongly for buying shares of Chinese stocks today. &a;ldquo;The Munger family is invested substantially in China today and done way better than&a;nbsp; expected. The best companies in China will make more money than the best companies in America,&a;rdquo; Munger said.&a;rdquo; It is not hard to find four or five Chinese companies to invest in today, Munger added this morning. Though he didn&a;rsquo;t identify the cheap Chinese stocks, Munger is known to have had a position in BYD, the electric car manufacturer.

In a conversation this morning about Berkshire&a;rsquo;s effort at instigating health reforms in the medical system, Munger, chairman of the Good Samaritan Hospital in Los Angeles, predicted bluntly, &a;ldquo;We&a;rsquo;ll get single payer medicine the first time one political party holds all three parts of the government.&q; Buffett predicted the new health partnership between Berkshire, Amazon and JPMorgan Chase should have a CEO named in the next two months. Munger added that Berkshire &a;ldquo;should be able to find the low hanging fruit of cutting health costs.&a;rdquo;&l;/p&g;