Buffett's patience pays dividends

Billionaire Warren Buffett's decision to increase his stake in financial companies led by Wells Fargo & Co and US Bancorp and avoid subprime lenders is paying off for Berkshire Hathaway Inc.

Berkshire's bank-related investments rose 36 percent in the third quarter, while the 84-member Standard & Poor's 500 Financials Index declined 0.1 percent. Berkshire, based in Omaha, Nebraska, ranked as the biggest shareholder of Wells Fargo and US Bancorp at the end of September, according to data compiled by Bloomberg.

"In one word, I can sum it up: patience," said William Frels, chief executive officer of Mairs & Power Inc in St. Paul, Minnesota, which owns shares of Wells Fargo and US Bancorp and has Berkshire stock in some client accounts. "Warren has the luxury of being able to exercise patience, where most of the other players are under the gun to make things happen and can't sit around and wait for opportunities."