As the scandal surrounding Wells Fargo was revealed, I took action to sell the stock in all client accounts where it was held. To avoid expected further declines, it was sold September 22. As your fiduciary, I maintain an investment approach intolerant of owning stock in a company facing allegations of misconduct and fraud such as Wells Fargo must contend with now.
It is my discipline that decisions to buy and sell stocks are based on fundamental and/or technical criteria. It is a pragmatic process, and as much as humanly possible, unemotional. While thankfully rare, there are situations that occur in the endeavor of investment management that test our moral compass. The current circumstances weighing on Wells Fargo is one of those times. In addition to a quick deterioration among key investment screens, the once favored bank stock will likely experience additional weakness as its’ image is marred by questionable business ethics and integrity.
You can remain assured that a zero-tolerance policy for corporate malfeasance will continue to govern your investment portfolio.
Thanks again for your continued trust and confidence.
Sincerely,
John Gardner, CFP