By now, you’ve probably heard about the massive investments Buffett has made into some of the biggest Wall Street firms.
But, in an article published in The New York Times on Wednesday, Buffett explains why he has a big stake in the biggest banks: Buffett has been a huge Wall Street booster since he was a boy, and the stock market is his favorite.
Buffet says he has been impressed by the performance of the U.S. financial markets over the past four years.
He also has been deeply impressed by how quickly and successfully the banks have transformed themselves into high-growth, high-margin companies.
He sees a lot of promise in the banks’ ability to take risks and make smart investments, and says they are among the best investment vehicles in the world.
The article quotes Buffett as saying: I was the only investor that I really trusted, but I really did trust that these companies were going to get better.
In a recent interview, Buffett said the banks had to get back on their feet, and he sees them doing just that: The banks are going to be much more efficient and be able to do much more of what they need to do.
“If they can get back to where they were when they went bankrupt, they can take on more risk and get better returns than they were doing before,” Buffett said.
Read more: New York Times article What Warren Buffett buys from Wall Street banks and why