In this article, we will list the 5 best financial stocks to buy according to Warren Buffett. Please visit 10 Best Financial Stocks to Buy According to Warren Buffett if you would like to see the extended list and the methodology behind it.
5. Capital One Financial Corporation (NYSE:COF)
Berkshire Hathaway’s Stake: $1.3 Billion
Capital One Financial Corporation (NYSE:COF) is a relatively recent addition to the 13F portfolio of Berkshire Hathaway. The fund first disclosed a stake in the company in the first quarter of 2023. Back then, this position comprised over 9.9 million shares. In the next quarter, the fund added to this position by 25%, growing share ownership to just under 12.5 million shares. In the second quarter of 2024, the fund trimmed the stake by over 21%, bringing share ownership down to around 9.8 million shares. Filings for the first quarter of 2026 show that the fund owned 7.1 million shares in the company, the same as in the previous quarter.
Capital One Financial Corporation (NYSE:COF) has been attracting interest from investors on Wall Street following a narrow headline miss in the latest earnings report. The firm reported a first-quarter net income of $2.2 billion. Adjusted EPS came in at $4.42, slightly trailing Wall Street consensus estimates of $4.51–$4.61 due to heavy integration-related adjustments. Total net revenue hit $15.23 billion against the $15.37 billion expected. Despite the minor miss, core business performance was highly positive. Pre-provision earnings actually increased 8% sequentially to $6.8 billion. The firm is in the process of integrating Discover Financial Services and the long-term prospects of this merger remain highly attractive to elite investors.
4. Moody’s Corporation (NYSE:MCO)
Berkshire Hathaway’s Stake: $10.8 Billion
Moody’s Corporation (NYSE:MCO) is one of the most prominent long-term bets of Berkshire Hathaway. The stock has consistently featured in the 13F portfolio of the hedge fund since the fourth quarter of 2010. Back then, this position comprised more than 28 million shares. This holding stayed constant till mid-2013, when the fund reduced the stake by more than 12%, taking ownership to over 24 million shares. Another 1% reduction to this holding was made in late 2013. Since then, no changes have been registered against this holding. Filings for the first quarter of 2026 show that the fund owned 24.6 million shares in the firm.
Moody’s Corporation (NYSE:MCO) recently beat market expectations on earnings per share and revenue for the first quarter of 2026, demonstrating that the dual-engine business model, Ratings and Analytics, is operating at peak efficiency. The firm posted an adjusted EPS of $4.33, comfortably beating Wall Street consensus projections of $4.26 per share. Total revenue climbed to $2.08 billion, driven by a recovery in global credit markets. While debt issuance volumes can fluctuate with macro cycles, hedge funds are highly attracted to the predictability of the Moody’s Analytics segment, which acts as a recurring software-as-a-service engine.
3. Chubb Limited (NYSE:CB)
Berkshire Hathaway’s Stake: $11 Billion
Chubb Limited (NYSE:CB) is a relatively recent addition to the 13F portfolio of Berkshire Hathaway. The fund first declared a stake in the company in the third quarter of 2023. Back then, this position comprised a little over 8 million shares. In the quarters since, the fund has gradually added to this holding. By early 2024, the fund owned over 24 million shares in the company. By the third quarter of 2025, this figure had jumped to over 31 million. Filings for the first quarter of 2026 show that the fund owned over 34 million shares in the firm, the same as in the filings for the fourth quarter of 2025.
Elite investors are bullish on Chubb Limited (NYSE:CB) as the firm has industry-leading underwriting margins and a healthy investment income tailwind. In the first quarter of 2026, the firm reported core operating income of $2.7 billion, or $6.82 per share, a 85.2% growth year-over-year that beat the consensus estimate of $6.61. Consolidated net premiums written climbed 10.7% to $14 billion. Growth was strong across the board, with Property & Casualty (P&C) premiums up 7.2% and Life Insurance premium volumes surging 33.1%. Earlier this month, the board authorized a brand new $7.5 billion share repurchase program.
2. Bank of America Corporation (NYSE:BAC)
Berkshire Hathaway’s Stake: $25 Billion
Bank of America Corporation (NYSE:BAC) is a long-term bet of Berkshire Hathaway. The stock has consistently featured in the 13F portfolio of the hedge fund since the third quarter of 2017. Back then, this position comprised 679 million shares. The fund steadily added to this stake in the coming months, growing it to more than 877 million shares by late 2018 and then to over 1 billion shares by early 2023. Since then, this stake has been trimmed. Filings for the first quarter of 2026 show that the fund owns over 513 million shares in the company, down a little under 1% compared to filings for the previous quarter.
Bank of America Corporation (NYSE:BAC) posted earnings for the first quarter of 2026 in mid-April, comfortably beating analyst expectations. The firm posted a diluted EPS of $1.11, handily beating the Wall Street consensus forecast of $1.01 to $1.02 per share. Total revenue grew 7.2% year-over-year to $30.43 billion. The net interest income gap between what the bank collects on loans and what it pays to depositors expanded to $15.9 billion, representing a 9% year-over-year gain that outpaced the $15.67 billion forecast reported by CNBC. Investment banking fees of the bank have skyrocketed 21% to $1.8 billion, driven by major roles in multibillion-dollar mega-mergers, such as Devon Energy’s $26 billion deal and Boston Scientific’s $14.9 billion acquisition of Penumbra.
1. American Express Company (NYSE:AXP)
Berkshire Hathaway’s Stake: $46 Billion
American Express Company (NYSE:AXP) is a long-term pick in the 13F portfolio of Berkshire Hathaway. The stock has featured in the portfolio of the fund since the fourth quarter of 2010. Back then, this position comprised over 151 million shares. The fund held onto this stake till the first quarter of 2012 before selling it off completely. A new position in the stock was then opened in the third quarter of 2012 but was sold off by the next quarter. Another position in the firm was declared in the third quarter of 2013. This consisted of more than 151 million shares. Since then, no change has been made to this stake, per filings for the first quarter of 2026.
American Express Company (NYSE:AXP) has strong financials and a premium customer base. In the latest earnings report, disclosed in late April, the company reported a diluted EPS of $4.28, representing an 18% increase year-over-year from $3.64. Net income grew 15% to $3 billion. Total revenues hit $18.91 billion, up 11%, driven by card fee growth and net interest income. Card Member spending growth also accelerated to 10%, marking the highest quarterly growth rate in three years. Backed by this momentum, management reaffirmed full-year 2026 guidance, projecting annual revenue growth of 9% to 10% and an EPS of $17.30 to $17.90.
While we acknowledge the potential of AXP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AXP and that has 100x upside potential, check out our report about the cheapest AI stock.
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