Warren Buffett would happily start building a position in Wells Fargo (WFC) at $56/share, writes...

|By:, SA News Editor

Warren Buffett would happily start building a position in Wells Fargo (WFC) at $56/share, writes The Brooklyn Investor, applying the Buffett/Munger 10% pretax return standard to the $29.9B the bank earned in the last 12 months. At the current share price near $44, the company can be had for a 12.8% pretax yield - no wonder Buffett's been buying more all year. Applying the same analysis to JPMorgan (JPM) finds the Oracle would gladly begin buying that bank at $84/share, 50% above Friday's close. It's a pretty safe bet Buffett hasn't sold any of his stake.