Wells Fargo, American Express, and More: Warren Buffett’s Favorite Financial Stocks

Page 1 of 2

BERKSHIRE HATHAWAYBerkshire Hathaway’s 13F filing for the third quarter of 2012 showed that the financial sector was Warren Buffett’s favorite area to invest in last summer; Berkshire had more capital invested in financial stocks than in any other sector. See the full list of stocks Berkshire reported owning. We have gone through the filing and picked out the holding company’s five largest positions in financials by market value. Investors shouldn’t buy stocks just because Buffett likes them, but we think that billionaires’ top picks can make good sources of investment ideas for further research. Here are our quick thoughts on Buffett’s favorite financial stocks:

Buffett’s favorite financial stock was large bank Wells Fargo & Company (NYSE:WFC). The market considers Wells Fargo to be a more stable bank than other megabanks such as Citigroup or JPMorgan Chase, and the stock actually trades at a premium to the book value of its equity with a P/B ratio of 1.2. The bank is using its assets quite efficiently, however, as it trades at 9 times forward earnings estimates- very much in line with its peers. Billionaire Ken Fisher’s Fisher Asset Management increased its stake by 70% to a total of 18.6 million shares, making Wells Fargo one if its ten largest holdings (find more of Fisher’s stock picks). JPMorgan Chase might be a better buy, but Wells Fargo is certainly priced competitively with other large banks.

American Express Company (NYSE:AXP), the debit and credit card issuer which also provides credit and travel services, was another of Buffett’s favorite stocks with Berkshire reporting a position of over 150 million shares. It’s also priced cheaply, at 13 times trailing earnings, though the company’s recent results have not been particularly good with revenue and earnings about flat last quarter compared to the third quarter of 2011. That value looks about right, but we’d suggest that investors at least look at low-priced peers such as Discover and Capital One before buying the stock.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!