(Bloomberg) -- Shares of Warren Buffett's Berkshire Hathaway Inc. are getting dragged down excessively by the slumping value of one of its biggest stock holdings, Wells Fargo & Co., according to analysts at Barclays Plc.
Berkshire was down 4.9 percent at 3:41 p.m. on Monday in New York, amid a broader sell-off in stocks. Buffett's conglomerate is the largest shareholder in the San Francisco-based bank, which plunged even more -- 9.1 percent -- after the Federal Reserve banned the bank Friday from growing until it convinces authorities it's addressing shortcomings.
The Barclays analysts estimated that a 10 percent decline in Wells Fargo's shares would translate into a "minimal," or about 1 percent, drop in Berkshire's book value, a measure of assets minus liabilities that many investors use to analyze the conglomerate.
“We view weakness in BRK shares from the downdraft in WFC as overblown,” the analysts wrote in a note to clients, using the ticker symbols for both companies. “Berkshire is a long-time owner of WFC shares.”
To contact the reporter on this story: Noah Buhayar in Seattle at nbuhayar@bloomberg.net.
To contact the editors responsible for this story: Margaret Collins at mcollins45@bloomberg.net, Heather Perlberg
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