Appreciating the US government’s decision to correct the economy amid a “financial hurricane,” billionaire investor Warren Buffett – Chairman of Berkshire Hathaway Inc – spoke about the state of the economy and his company, at the Berkshire annual shareholders’ meet on Saturday.

In the five-hours-long meeting, Buffett and Berkshire Vice Chairman Charles Munger addresses a packed house of nearly 35,000 people, and answered the questions put by them.

Buffet defended the decisions he had made to see the Nebraska-based Berkshire through the economic downturn, and dismissed the supposed significance of the government stress tests for assessing banks. Buffet opines that it is not possible to view US banks “indiscriminately,” and said that he assesses banks on the basis of their “dynamism” and their ability to draw deposits.

He also said that Wells Fargo & Co - Berkshire’s second-biggest holding by market value - will prosper, despite the somewhat disquieting results.
Wells Fargo, which cut its dividend by a whopping 85 percent in March, has declined 33 percent on the New York Stock Exchange, due to concerns that it will take losses on loans acquired with the Wachovia Corp takeover.

Calling Wells Fargo a ‘fabulous’ company, Buffet remarked: “All banks aren’t alike by a long shot, and in our view Wells Fargo, among the large banks, has some advantages the others do not.”