12 Best Holding Company Stocks To Invest In

Published January 16, 2023 at 10:52 am EST Updated August 19, 2026 at 9:15 am EDT

In this article, we discuss 12 best holding company stocks to invest in.

A holding company is a business entity, usually a corporation or limited liability company, that does not directly manufacture products, offer any services, or carry out any other business operations. Instead, holding companies own controlling stakes in other companies. The main purpose of a holding company is to offer centralized management, and they may also be used for tax or liability purposes. So while it may oversee a subsidiary’s management decisions, a holding company does not actively engage in the daily operations of these subsidiaries.

While a holding company structure can be complicated to navigate, it offers multiple benefits including centralized management and control, limited liability, tax relief, flexibility in terms of investment opportunities and diversifying risk, and branding and reputation management. However, holding companies are subject to additional regulations, limited control over the day-to-day operations of their subsidiary companies, dependence on the performance of subsidiary companies, and problems in raising capital.

Some of the best holding company stocks to invest in include JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), and Berkshire Hathaway Inc. (NYSE:BRK-A). Investors can also take a look at the biggest holding companies in the world for a well-rounded stock portfolio. (see 15 Biggest Holding Companies in the World)

Our Methodology

We selected the following holding company stocks based on overall hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. The list is arranged in ascending order of the number of hedge fund holders in each firm.

Pixabay/Public Domain

Best Holding Company Stocks To Invest In

12. NatWest Group plc (NYSE:NWG)

Number of Hedge Fund Holders: 7

NatWest Group plc (NYSE:NWG) was founded in 1727 and is headquartered in Edinburgh, the United Kingdom. It is a banking and insurance holding company that provides financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Commercial Banking, Private Banking, RBS International, and NatWest Markets segments.

On October 28, NatWest Group plc (NYSE:NWG) reported a third quarter revenue of £3.23 billion, up 20.1% on a year-over-year basis and the GAAP EPS came in at 1.90p for the period. Bank net interest margin of 2.99% was 27 basis points higher than Q2 2022, which was attributed to the impact of base rate increases. In 2023, the company expects to achieve a planned return on tangible equity in the range of 14 to 16%.

JPMorgan analyst Raul Sinha raised the firm’s price target on NatWest Group plc (NYSE:NWG) on December 6 to 310 GBp from 300 GBp and kept a Neutral rating on the shares.

According to Insider Monkey’s data, NatWest Group plc (NYSE:NWG) was part of 7 hedge fund portfolios at the end of September 2022, compared to 10 in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the leading position holder in the company, with 3.34 million shares worth $16.7 million.

Like JPMorgan Chase & Co., Bank of America Corporation, and Berkshire Hathaway Inc., NatWest Group plc (NYSE:NWG) is one of the best holding company stocks to consider.

11. Huntington Bancshares Incorporated (NASDAQ:HBAN)

Number of Hedge Fund Holders: 23

Huntington Bancshares Incorporated (NASDAQ:HBAN) was founded in 1866 and is headquartered in Columbus, Ohio. It operates as the bank holding company for The Huntington National Bank, offering commercial, consumer, and mortgage banking services in the United States. The company has four segments – Consumer and Business Banking, Commercial Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group.

Huntington Bancshares Incorporated paid a $0.155 per share quarterly dividend on January 3, 2023. On November 10, the company increased its medium-term targets for return on tangible common equity to more than 20%. By comparison, Huntington Bancshares Incorporated’s Q3 ROTCE was 21.9% and adjusted ROTCE was 22.2%. The bank is aiming for pre-provision net revenue growth of 6%-9% for the medium-term and positive operating leverage. It is one of the best holding company stocks to invest in.

On December 5, Morgan Stanley analyst Manan Gosalia upgraded Huntington Bancshares Incorporated to Overweight from Equal Weight with a price target of $19, up from $16. The analyst prefers mid-cap banks that are best positioned to manage the headwinds from tightening liquidity conditions as rates rise.

According to Insider Monkey’s Q3 data, 23 hedge funds were long Huntington Bancshares Incorporated, with collective stakes worth $168.3 million, compared to 23 funds in the prior quarter worth $71.8 million. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with 7 million shares worth $92.3 million.

Aristotle Capital made the following comment about Huntington Bancshares Incorporated in its Q3 2022 investor letter:

“Huntington Bancshares Incorporated, an Ohio-based bank holding company, was removed from the portfolio based on our belief that shares were fully valued and there were better opportunities to deploy capital elsewhere within the portfolio.”

10. MetLife, Inc. (NYSE:MET)

Number of Hedge Fund Holders: 36

MetLife, Inc. (NYSE:MET) is a New York-based holding corporation for the Metropolitan Life Insurance Company, or MetLife, and its affiliates. It is a financial services company that provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through five segments – U.S., Asia, Latin America, Europe, the Middle East and Africa, and MetLife Holdings. On January 10, MetLife, Inc. declared a $0.50 per share quarterly dividend, in line with previous. The dividend is payable on March 14, to shareholders of record on February 7. The company also announced that it will redeem all outstanding $1 billion of 4.368% series D senior debentures on February 10. It is one of the best holding company stocks to invest in.

On January 6, JPMorgan analyst Jimmy Bhullar raised the price target on MetLife, Inc. to $80 from $77 and maintained an Overweight rating on the shares. The analyst’s long-term outlook for the life insurance sector is “downbeat” and he thinks that the near-term risk-reward in stocks is “not enticing.” Life insurance stocks outperformed in 2022 and could perform well if interest rates increase further, the analyst wrote in a research note.

According to Insider Monkey’s data, 36 hedge funds were bullish on MetLife, Inc. at the end of Q3 2022, with combined stakes worth $667.4 million, compared to 36 funds in the prior quarter worth $612.8 million. Richard S. Pzena’s Pzena Investment Management is the biggest stakeholder of the company, with 4.75 million shares worth $288.65 million.

9. United Airlines Holdings, Inc. (NASDAQ:UAL)

Number of Hedge Fund Holders: 37

United Airlines Holdings, Inc. (NASDAQ:UAL) is headquartered in Chicago, Illinois, and it is the parent company of United Airlines, one of the largest airlines in the world. The company provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. Primary positive catalysts for United Airlines Holdings, Inc. in 2023 include the carrier benefiting from international recovery, the new CASMxF trajectory with the pilot contract, and a positive fleet renewal path exiting 2023. It is one of the top holding company stocks to consider.

On January 12, Barclays analyst Brandon Oglenski raised the price target on United Airlines Holdings, Inc. to $45 from $42 and reiterated an Overweight rating on the shares as part of his Q4 preview. Airline stocks are discounting a possible slowdown in demand, but improved leveraging of cost structures through capacity growth and lower than expected jet fuel prices “could be powerful favorable offsets” in 2023, the analyst told investors in a research note.

According to Insider Monkey’s data, United Airlines Holdings, Inc. was part of 37 hedge fund portfolios at the end of Q3 2022, compared to 35 in the prior quarter. Israel Englander’s Millennium Management is a prominent stakeholder of the company, with approximately 4 million shares worth $126.6 million.

8. M&T Bank Corporation (NYSE:MTB)

Number of Hedge Fund Holders: 44

M&T Bank Corporation is a New York-based bank holding company that provides commercial and retail banking services. M&T Bank Corporation operates through Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking segments. It is one of the best holding company stocks to monitor.

On January 6, Deutsche Bank analyst Matt O’Connor maintained a Buy rating on M&T Bank Corporation but lowered the firm’s price target on the shares to $175 from $255. Similarly, on January 3, Wedbush analyst David Chiaverini upgraded M&T Bank Corporation to Outperform from Neutral on prospects that it could outshine peers from a credit quality standpoint against a recession backdrop.

According to Insider Monkey’s third quarter database, 44 hedge funds were long M&T Bank Corporation, compared to 39 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 1.48 million shares worth $261.8 million.

7. American International Group, Inc. (NYSE:AIG)

Number of Hedge Fund Holders: 48

American International Group, Inc. (NYSE:AIG) is one of the best holding company stocks to consider. American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. The company specializes in general insurance, health insurance, vehicle insurance, travel insurance, home insurance, life insurance, mortgage loans, investment management, and mutual funds.

On December 14, RBC Capital analyst Mark Dwelle raised the price target on American International Group, Inc. to $73 from $68 and maintained an Outperform rating on the shares.

According to Insider Monkey’s data, 48 hedge funds were long American International Group, Inc. at the end of the third quarter of 2022, compared to 44 funds in the prior quarter. Harris Associates is the largest stakeholder of the company, with 22.5 million shares valued at over $1 billion.

Diamond Hill Capital made the following comment about American International Group, Inc. in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer, media and technology giant Alphabet, and insurance company American International Group, Inc..

AIG reported strong Q2 earnings, but volatile capital markets led to delays in the IPO of the company’s life and retirement business and concerns about the quality of the company’s investment portfolio. We continue to believe AIG has one of the best management teams in the industry, and they’ve been executing well on turning the business around and improving underwriting and expense control.”

6. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 52

Morgan Stanley (NYSE:MS) is a New York-based financial holding company that provides financial products and services to corporations, governments, financial institutions, and individuals, operating through Institutional Securities, Wealth Management, and Investment Management segments. On January 5, Bank of America noted that dividends will see higher importance as investors focus more on total returns in the present investment environment. BofA listed Morgan Stanley as one of the favorite picks for dividend investing.

On January 3, investment advisory Barclays raised the firm’s price target on Morgan Stanley to $125 from $105 and maintained an Overweight rating on the shares. Analyst Jason Goldberg issued the ratings update.

According to Insider Monkey’s third quarter database, 52 hedge funds were long Morgan Stanley, with combined stakes worth $3.3 billion, compared to 58 funds in the prior quarter worth $2.9 billion. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 18.4 million shares worth $1.45 billion.

In addition to JPMorgan Chase & Co., Bank of America Corporation, and Berkshire Hathaway Inc., Morgan Stanley is one of the top holding company stocks to invest in.

Here is what Madison Dividend Income Fund has to say about Morgan Stanley in its Q3 2022 investor letter:

“This quarter we are highlighting Morgan Stanley as a relative yield example in the Financial sector. MS is a leading investment bank and wealth management firm with approximately $5 trillion of client assets under management. It merged Citigroup’s Smith Barney business into its own wealth management business after the 2008 recession/financial crisis, which resulted in a more stable business model. Recent acquisitions of asset manager Eaton Vance and E-Trade provide additional stability and higher returns on capital. We believe MS has a sustainable competitive advantage due to its size and scale, global reach, strong reputation, and financial distribution capabilities. Importantly for a financial institution, it is in good financial health as key leverage ratios including common equity Tier 1 ratio, Tier 1 capital ratio, Tier 1 leverage ratio, and supplementary leverage ratio were all well above required minimums at the end of 2021.

Our thesis on MS is that its wealth management business will continue to become a larger part of the overall company, which will increase overall margins and return on equity (ROE). Wealth management and asset management are less cyclical than investment banking, and often generate higher margins and provide better stability of financial results. For example, the addition of Smith Barney added significant scale and boosted wealth management operating margins from below 10% into the mid-20%s over the past several years while also increasing returns on equity. Looking ahead, we believe the company will benefit from rising asset prices and higher interest rates, should they happen over time…” (Click here to see the full text)

5. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 75

The Charles Schwab Corporation (NYSE:SCHW), through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advisor Services. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas. It is one of the best holding company stocks to monitor.

On January 4, Alexander Blostein, a Goldman Sachs analyst, upgraded The Charles Schwab Corporation from Neutral to Buy and set a $98 price target for the stock. According to the analyst, the company’s deposit balances are expected to trough by mid-2023, which will “unlock significant earnings power.” The analyst forecasts Schwab’s annual earnings growth to be greater than 20% over the next two years, “with sustainable tailwinds beyond that.”

According to Insider Monkey’s third quarter database, 75 hedge funds were bullish on The Charles Schwab Corporation, compared to 68 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading stakeholder of the company, with 16.5 million shares worth $1.19 billion.

Ariel Investment made the following comment about The Charles Schwab Corporation in its Q3 2022 investor letter:

“Shares of financial services provider The Charles Schwab Corporation also traded higher following the delivery of a top and bottom-line earnings beat, an increase in its quarterly dividend and the announcement of a significant stock repurchase program. We believe the company will continue to weather various macro and competitive pressures in a rising rate environment by flexing its scale and customer-centric focus in support of its industry leading cost advantage. We also think the TD Ameritrade acquisition will create incremental value and further enhance SCHW’s marketplace standing and long-term growth trajectory.”

4. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 77

Wells Fargo & Company is a diversified financial services holding company that provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. The company reported its Q4 2022 financial results on January 13, announcing a GAAP EPS of $0.67, beating estimates by $0.06. However, Wells Fargo & Company’s revenue of $19.66 billion missed Wall Street consensus by $380 million.

On January 11, after Wells Fargo & Company disclosed a strategic realignment of its mortgage banking business that includes concluding the correspondent mortgage banking channel and trimming the size of the bank’s mortgage servicing portfolio, Morgan Stanley analyst Betsy Graseck said the shift “doesn’t move the EPS needle,” and expects Wells Fargo & Company to redirect capital associated with correspondent mortgage banking to retail mortgage production. The analyst maintained an Overweight rating and a $58 price target on Wells Fargo & Company shares.

According to Insider Monkey’s Q3 data, 77 hedge funds were bullish on Wells Fargo & Company, compared to 83 funds in the prior quarter. Boykin Curry’s Eagle Capital Management is the biggest stakeholder of the company, with more than 23 million shares worth $928 million.

Here is what Oakmark Funds specifically said about Wells Fargo & Company in its Q3 2022 investor letter:

“Wells Fargo & Company has been a long-time holding in the Oakmark Fund. Despite the positives of higher interest rates and the company making good progress on reducing expenses and regulatory consent orders, Wells Fargo shares have fallen one-third from their highs earlier this year to roughly 6.5x our estimate of normalized earnings power, and the stock ended the quarter at ~1x next year’s tangible book value. We find this is far too cheap for a strong banking franchise capable of tangible returns in the low-to-mid teens across business cycles.”

3. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 97

Bank of America Corporation is an American multinational investment bank and financial services holding company that provides banking and financial products and services to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. On January 13, Bank of America Corporation reported a Q4 GAAP EPS of $0.85 and a revenue of $24.53 billion, outperforming Wall Street estimates by $0.08 and $360 million, respectively. It is one of the premier holding company stocks to invest in.

On January 3, Barclays analyst Jason Goldberg maintained an Overweight rating on Bank of America Corporation but lowered the firm’s price target on the shares to $48 from $51. Similarly, Odeon Capital analyst Dick Bove upgraded the stock on January 10 to Buy from Hold with a $38.44 price target.

According to Insider Monkey’s data, Bank of America Corporation was part of 97 hedge fund portfolios at the end of the third quarter of 2022, compared to 99 in the last quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with more than 1 billion shares worth $30.5 billion.

Ariel Investment made the following comment about Bank of America Corporation in its Q3 2022 investor letter:

“We initiated three new positions in the quarter. We added leading financial institution Bank of America Corporation which serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. The current company was formed through various mergers including NationsBank, FleetBoston, US Trust, Countrywide Financial, and Merrill Lynch with the legacy commercial bank to form a national banking powerhouse and bulge bracket investment firm. As one of the ‘Big Four’ U.S. banks it enjoys scale driven cost advantages and economies of scale which provide meaningful competitive advantages and potential for strong returns in the largely commoditized banking industry. A survivor of the financial crisis, BAC has emerged with a solid capital base and stands to benefit from a rising interest rate environment.”

2. Berkshire Hathaway Inc. (NYSE:BRK-A)

Number of Hedge Fund Holders: 104

Berkshire Hathaway Inc. is an American multinational conglomerate holding company that engages in the insurance, freight rail transportation, and utility businesses worldwide through its subsidiaries. Berkshire Hathaway Inc. was incorporated in 1998 and is headquartered in Omaha, Nebraska. It is one of the best holding company stocks to buy.

Keefe Bruyette analyst Meyer Shields on November 6 reiterated a Market Perform rating on Berkshire Hathaway Inc. and trimmed the firm’s price target on the shares to $495,000 from $500,000. The company’s Q3 operating earnings strongly outperformed estimates, reflecting higher than expected Insurance underwriting income and Manufacturing, Service, and Retailing earnings, the analyst told investors in a research note.

Among the hedge funds tracked by Insider Monkey, 104 funds were long Berkshire Hathaway Inc. at the end of September 2022, compared to 109 in the prior quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with approximately 30 million shares worth nearly $8 billion.

Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. in its Q3 2022 investor letter:

“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 110

JPMorgan Chase & Co. is an American multinational financial services company that operates through four segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management. On January 13, JPMorgan Chase & Co. reported a Q4 non-GAAP EPS of $3.56 and a revenue of $34.5 billion, outperforming Wall Street forecasts by $0.46 and $270 million, respectively. The company also expects to resume stock buybacks this quarter and aims for $12 billion stock repurchases this year. It is one of the best holding company stocks to invest in.

On January 3, Barclays analyst Jason Goldberg raised the firm’s price target on JPMorgan Chase & Co. to $189 from $162 and reiterated an Overweight rating on the shares.

According to Insider Monkey’s data, 110 hedge funds were bullish on JPMorgan Chase & Co. at the end of Q3 2022, compared to 104 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 7.85 million shares worth $821 million.

Here is what Vltava Fund has to say about JPMorgan Chase & Co. in its Q3 2022 investor letter:

“We regard JPM to be the strongest and best- managed bank in the world. It is a leader in investment banking, commercial banking, credit cards, and asset management. Its size (the largest bank in the USA, with nearly USD 4,000 billion in assets) and diversification give it a strong competitive advantage that is compounded by its cost advantages and the high costs to clients associated with switching banks. JPM’s management prides itself on running the only large bank to avoid major instability over the long term.

JP Morgan’s quality and strength first became fully evident in 2008 under the leadership of its CEO Jamie Dimon. Not only did JP Morgan help to stabilize the market by taking over the failing Bear Stearns in the spring of that year, but throughout the Great Financial Crisis it was the only big US bank that did not require government assistance and it was highly profitable even in the difficult year of 2008.

A well-functioning and efficient bank can be a very good long-term investment, because the interest compounding effect works well here. JPM’s return on equity (ROE) is well into the double digits and this puts it in a good position to continue producing better long-term returns than does the market. JPM has been very profitable even during years when interest rates were close to zero. The current – and perhaps not temporary – return to somewhat more normal, higher interest rates should have a significantly positive impact on the bank’s interest income and overall profitability.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 10 Stocks with Biggest Buybacks and 20 Biggest Natural Resources Companies in the World.