Over one-third of Warren Buffet's staggering $296 billion fortune is allocated to these 11 financial stocks. Uncovering the top performer amongst them for the year 2025.
Warren Buffet, the esteemed investor and billionaire, has a knack for handling money, and his wealth of around $144 billion speaks volumes. Despite Berkshire Hathaway's wide-ranging activities, it's situated in the financial services sector due to its substantial insurance operations.
Even though Berkshire Hathaway operates in various fields, Buffet's fascination with financial stocks is quite evident. An impressive 39% of his $296 billion portfolio is devoted to 11 financial stocks. Let me walk you through his top picks:
- American Express (AXP): This stock takes the second spot in Buffet's portfolio, accounting for 16.3%. Berkshire Hathaway possesses a substantial stake in American Express worth over $48 billion, mainly due to its renowned credit cards.
- Bank of America (BAC): Buffet's third largest holding is Bank of America, with a 12.1% share of his portfolio. Berkshire owns $36.8 billion of Bank of America shares, putting it firmly in his investment strategy.
- Moody's (MCO): Moody's is rank 7 in Buffet's portfolio and contributes a modest 4.1% to his total investment. Berkshire's $7.2 billion stake in the company reflects its confidence in Moody's future.
- Chubb (CB): Berkshire Hathaway holds a significant stake in Chubb, worth roughly $7.2 billion. The insurance giant accounts for 2.4% of Buffet's portfolio, highlighting the importance of insurance stocks in his strategy.
- Citigroup (C): The sole financial stock with a 1% share of Buffet's portfolio is Citigroup. Berkshire holds a substantial position worth approximately $4.5 billion in the banking giant.
Other notable stocks in Buffet's portfolio include Visa, Mastercard, Capital One Financial, Ally Financial, and Nu Holdings, with varying percentages of his portfolio.
Buffet's financial stocks have shown impressive growth over the past 12 months. For example, American Express and Jefferies Financial Group have soared by 70% and 88%, respectively, while Bank of America, Chubb, and Capital One Financial have all demonstrated solid gains.
However, not every stock in Buffet's portfolio has been a winner. The worst performer is Ally Financial, which has only managed a rise of less than 10%. Despite this, Ally's low price-to-earnings ratio and high dividend yield make it an attractive investment for income investors.
On the other hand, Nu Holdings, a Buffet stock with high growth potential, tops the list of stocks with the highest expected upside potential over the next 12 months. This Latin American digital bank leader is beloved by growth investors for its rapidly growing revenue and earnings.
In conclusion, Buffet's top 11 financial stocks offer a mix of growth potential and income, making it a diverse and well-rounded investment portfolio. For investors looking to emulate Buffet's strategy, studying his picks and understanding the mechanics behind his financial decisions can lead to successful investments.
Buffet's investment strategy heavily leans towards financial stocks, as evidenced by the 39% allocation to this sector within his $296 billion portfolio. Additionally, the impressive growth of his financial stocks, such as American Express and Bank of America, has contributed to his wealth.
