WILL BUFFET'S SCOOP OF CITIGROUP PUT IT BACK IN THE LOOP?!

Warren Buffet has had a busy year after sitting on the sidelines during the unrealistic bull market post covid. Berkshire had a record of $146.7 billion in cash at the end of 2021. Buffet's new big investment is $3 billion in Citigroup bank which accounts for 2.5% of Citigroup's outstanding shares or .81% of Buffet's portfolio. Warren Buffet has not been the only one investing in the value stock, 97 hedge funds have shown interest in the company, while only 79 were the previous quarter. These stakes account for $6.6 billion, while Harris Associates alone accounts for $1.4 billion. Warren Buffet entered citigroup after selling his remaining position in Wells Fargo & Co which he has been a decent chunk of his portfolio for three decades. Warren Buffet is a huge advocate of banks, owning Bank of America, The Bank of New York Mellon, and US Bancorp. Citigroup has yet to recover from the crash of 2008 and has declined over 20% YTD. Citigroup has also warned investors that they are expected to lose up to $3 billion due to controversy with Russia.

On the bright side, the low forward P/TB of .65 and low forward P/E of 7.1 makes the purchase one of the biggest steals in the banking industry. And of course CItigroup has a high dividend yeild, unless Warren Buffet probably wouldn't of been interested in the first place (Buffet also entered a new position in Paramount, which seems smart since they have a yeild of 2.83% and netflix has been having problems with competitors and adding subscribers. Buffet has been selling healthcare investments and adding to energy even though Chevron is at a all time high). The bank has a yeild of 4% which is higher than the industry avergae of 3.17% and has returned $77 billion to shareholders from 2017 - 2021. Not only is their dividends attractive but they are also excpected to use a bunch of capital to buyback shares. The stock's rating is considered outperforming and the firm set a price target of $93.