We are experiencing some temporary issues. The market data on this page is currently delayed. Please bear with us as we address this and restore your personalized lists.
Warren Buffett is a money man -- in multiple ways. The legendary investor ranks among the wealthiest people in the world with a net worth of around $144 billion. While his Berkshire Hathaway operates in a wide range of sectors, it's categorized in the financial services sector because of its huge insurance businesses.
You might be surprised at just how important other financial stocks are to Buffett. A little over 39% of his $296 billion Berkshire Hathaway portfolio is invested in 11 financial stocks.
Buffett's top 10 financial stocks (plus one)
American Express(NYSE: AXP) ranks as Berkshire's second largest holding, making up 16.3% of the conglomerate's portfolio. Berkshire's stake in the financial services company, which is best known for its credit cards, is worth over $48 billion.
Another financial stock, Bank of America(NYSE: BAC), is right behind AmEx as Buffett's third largest holding. Berkshire owns nearly $36.8 billion of BofA shares, enough to comprise 12.1% of its portfolio.
Two other financial stocks are also among Berkshire's 10 largest positions. Moody's(NYSE: MCO) is No. 7 and makes up 4.1% of the conglomerate's portfolio. Chubb(NYSE: CB) ranks ninth, with Berkshire's roughly $7.2 billion stake reflecting 2.4% of its equity portfolio.
Citigroup(NYSE: C) is the sole remaining financial stock that makes up at least 1% of Berkshire's portfolio. Buffett has a position worth around $4.5 billion in the big bank. The credit card duopoly of Visa(NYSE: V) and Mastercard(NYSE: MA) comprise 0.9% and 0.7%, respectively, of Berkshire's total holdings. Capital One Financial(NYSE: COF) isn't far behind at 0.6%. Ally Financial(NYSE: ALLY) and Nu Holdings(NYSE: NU) are tied, with each stock making up 0.4% of Berkshire's portfolio.
In addition to those top 10 financial stocks, Buffett and company also have a tiny position in Jefferies Financial Group(NYSE: JEF) worth around $32.6 million. That's chump change for Berkshire and is such a small amount it doesn't even reach 0.1% of the conglomerate's total portfolio.
How Buffett's financial stocks stack up against each other
Two of Buffett's financial stocks have delivered especially sizzling gains over the past 12 months. Jefferies' shares skyrocketed 88%, while American Express stock soared around 70%. Several others were big winners, though, including Capital One, Citigroup, and Bank of America.
Unsurprisingly, Buffett's worst performer in the group, Ally Financial, which rose less than 10% over the past 12 months, has the most attractive valuation. Ally's forward price-to-earnings ratio is a low 8.5. However, some of Buffett's strongest-performing financial stocks are still reasonably valued despite their big gains. For example, Citigroup trades below 11 times forward earnings.
Ally and Citigroup will also likely appeal the most to income investors. Ally's forward dividend yield tops 3%. Citigroup's forward dividend yield is 2.74%. On the other hand, many of Buffett's financial stocks offer paltry dividend yields of under 1%. Nu Holdings doesn't pay any dividends.
Which of these stocks does Wall Street think will jump the most over the next 12 months? Nu is the hands-down winner, with the consensus analysts' price target reflecting an upside potential of nearly 22%. Wall Street also projects that Bank of America, Chubb, Ally, and Jefferies will deliver double-digit percentage gains.
The best of the bunch
Buffett would almost certainly say that American Express is the best long-term pick of these 11 financial stocks. It's the only member of the group he included in the list of stocks he plans to own "indefinitely."
I view several of these stocks, including American Express, as great choices for investors to buy and hold. However, I'm on the same page as Wall Street with my pick as the best of the bunch for 2025: It's Nu.
Nu's revenue and earnings continue to grow rapidly. The Latin American digital bank leader dominates the market in its home country of Brazil. It also has tremendous growth prospects in Mexico and Colombia. Income investors will turn up their noses at Nu, but growth investors should love this Buffett stock.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $369,816!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,191!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $527,206!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Ally is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Keith Speights has positions in Berkshire Hathaway, Chubb, and Mastercard. The Motley Fool has positions in and recommends Bank of America, Berkshire Hathaway, Jefferies Financial Group, Mastercard, Moody's, and Visa. The Motley Fool recommends Nu Holdings and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
