12 Best Warren Buffett Stock Picks For Beginners

Page 4 of 11

8. Capital One Financial Corporation (NYSE:COF)

Number of Hedge Fund Holders: 89

Berkshire Hathaway’s Stake Value: $1,328,484,000

Capital One Financial Corporation (NYSE:COF) offers a wide range of financial products and services across the United States, Canada, and the United Kingdom. It operates through three main divisions – Credit Card, Consumer Banking, and Commercial Banking. COF is a relatively new addition to Warren Buffett’s holdings. The billionaire picked up the stock in the first quarter of 2023. He currently owns $1.3 million worth of COF shares.

On April 23, UBS analysts assigned a Buy rating and a $235 price target to Capital One Financial Corporation (NYSE:COF). According to the analysts, the company’s credit trends improved, card growth rose 4%, and delinquencies dropped. A slight revenue miss was tied to a lower net interest margin. UBS remains positive on the stock, highlighting the management’s clear outlook on cost synergies from the DFS integration.

Capital One Financial Corporation (NYSE:COF) reported on April 18 that it has officially received all the necessary approvals for the Discover merger, which is set to close on May 18, 2025. Leaders from both companies said the deal will boost competition, expand products and services, and bring big community investments through a $265 billion plan. For now, nothing will change for customers, and any future updates will be shared ahead of time.

Capital One Financial Corporation (NYSE:COF) reported $1.4 billion in net income for Q1 2025, with adjusted earnings reaching $4.06 per share. Revenue dipped 2% to $10 billion, while expenses fell 3% due to lower marketing costs. Loan balances dropped slightly, but deposits rose 1% to $367.5 billion. Liquidity reserves grew to $131 billion, and cash holdings increased by $5 billion to $49 billion for the first quarter, supported by retail deposit growth and seasonal card balance paydowns.

According to Insider Monkey’s data, 89 hedge funds were backing Capital One Financial Corporation (NYSE:COF) at the end of Q4 2024. That, in addition to Berkshire holding a $1.3 billion stake in COF, makes it one of the best Warren Buffett stock picks for beginners.

Page 4 of 11