Warren Buffett "Guarantees" These 2 Bank Stocks

Imagine having the opportunity to invest into companies that are "guaranteed" by one of the world's wealthiest men -- Warren Buffett. Most investors would jump at the chance to know they are on the same side as successful investors like him.

Does this seem like pie-in-the-sky thinking? Well, it's not.
Buffett has just issued a personal guarantee on the controversial bank sector.

In mid-January, the Oracle of Omaha appeared on Bloomberg and surprised Wall Street, personally guaranteeing the safety of the U.S. banking segment.
"The banks will not get this country in trouble, I guarantee it," he said.

"The capital ratios are huge, the excesses on the asset side have been largely cleared out... we own bank shares and I personally own stock in banks... I do not see problems in these things."
Clearly, Buffett's commitment to the banking sector goes beyond just his words. More than 37% of his $75 billion-plus portfolio is dedicated to this sector, according to our friends at GuruFocus.com. In fact, out of this 37%, nearly 23% is focused on three U.S. banks -- Wells Fargo (NYSE: WFC), M&T Bank (NYSE: MTB) and U.S. Bancorp (NYSE: USB).

Here's a closer look at two stocks the billionaire investor has large stakes in.

1. M&T Bank
After dumping nearly 1.5 million shares of this bank in early 2010, Buffett is back on the "buy" side, with a purchase of more than 18,000 shares during the third quarter of 2011. There has been no activity since then, yet Buffett is sitting on nearly 5.5 million shares, representing a little more than 4% of shares outstanding, valued at nearly half a billion dollars. (more)


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