Buffett optimistic on US financials:
The $736bn (GuruFocus, 2018) asset manager Berkshire Hathaway has recently revealed that it has taken a $4bn stake in JPMorgan Chase, worth about 1.1% of their outstanding shares . Berkshire has also invested billions of dollars into other US banks  to expand its huge long bet on the US financial sector. The news comes after many major US banks including JPMorgan reported better than expected earnings and revenue in the third quarter of the financial year . Since US financial companies were reportedly on the cusp of a bear market over the summer (Authers, 2018), such positive outcomes represent a sharp turnaround from earlier on in the year. Optimism is growing for US financials amongst investors like Warren Buffett even amidst an uncertain geopolitical landscape and the threat of trade wars between the US and countries such as China. Buffett’s empire includes stakes in other large companies such as Wells Fargo and American Express (Ft.com, 2018).
 Authors, J. (2018). Global banks sliding share prices signify financial stress | Financial Times. [online] Ft.com. Available at: https://www.ft.com/content/abea029a-6f0a-11e8-852d-d8b934ff5ffa [Accessed 15 Nov. 2018].
 Ft.com. (2018). Warren Buffett’s Berkshire Hathaway takes new stake in JPMorgan | Financial Times. [online] Available at: https://www.ft.com/content/b85a698a-e853-11e8-8a85-04b8afea6ea3 [Accessed 15 Nov. 2018].
 GuruFocus. (2018). Berkshire Hathaway – Total Assets. [online] Available at: https://www.gurufocus.com/term/Total+Assets/BRK.B/Total-Assets/Berkshire-Hathaway-Inc [Accessed 15 Nov. 2018].
 Son, H. (2018). JP Morgan reports better-than-expected earnings and revenue, but bond trading revenue is weak. [online] CNBC. Available at: https://www.cnbc.com/2018/10/12/jp-morgan-earnings-q3-2018.html [Accessed 15 Nov. 2018].