WBC price target $41, page-505

One of Buffett's largest holding is Bank of America Corp (BAC) and its share price has dropped from $35.72 high in Feb20 to $17.95 low last night. Buffett owns nearly one billion BAC shares and just under 10% of BAC. This price drop has resulted in a paper loss of approximately $17 billion but Buffett is not selling BAC shares.

No one could have predicted that BAC will drop so sharply and so quickly. Buffett is the most successful stock market investor ever born and one thing is for sure that in the future BAC share price will back up and at some point in time it will breach its recent high as well.

JP Morgan recommends Westpac
Citi rates banks a 'buy', despite likely cut to dividends

Most of the other remaining research analysts will start updating their recommendations shortly as well. Westpac and other Aussie banks have been oversold as people tend to overreact during times like this. If you started saying in December 2019 that Westpac will drop to $14 for no rhyme or reason and now you start bragging about it then you are fooling yourself. The recent drop in Westpac share price is due to the panic caused by Coronavirus which no one saw coming in December 2019. This share price drop is temporary and it will recover most of the recent drop in due course. There will be growth for Banks when this pandemic ends. Banks are twice as stronger this time than they were during the GFC. FY20 results for banks might not be great but FY21 results will be better than FY20. Things will be back on track from FY22 and forward. Hold on to Westpac for the long term and wait patiently and collect dividends in the meantime. Everything will be ok in the end. If it is not ok, then it is not the end yet.