5 Best Value Stocks to Buy Right Now According to Value Investor Martin D. Sass

4. The Charles Schwab Corporation (NYSE: SCHW)

Value: $25,875,000
Percent of Martin Sass’ 13F Portfolio: 5.54%
No. of Hedge Fund Holders: 61

Sass’ strategy of initiating a position in The Charles Schwab Corporation (NYSE: SCHW) at the beginning of 2020 contributed strongly to overall returns. The shares of Charles Schwab jumped 31% year to date, extending the twelve-month gains to 88%. The company also offers a dividend yield of just over 1%. The massive user growth is among the biggest catalyst for brokerage platform stock price rally in the past few quarters.

The company is also getting the attention of the smart money, as 61 hedge funds tracked by Insider Monkey reported owning stakes in the company at the end of the fourth quarter, up from 53 funds a quarter earlier.

Baron Asset Fund stated in their Q1 2021 investor letter, that it’s too late to buy The Charles Schwab Corporation stock. Here is what Baron Asset Fund said:

“Shares of brokerage firm The Charles Schwab Corp. rose in the quarter. The company continued to successfully integrate its acquisition of TD Ameritrade. The merger enables Schwab to leverage efficiencies of scale to drive down its industry-leading operating costs per client assets even further. Additionally, net new assets grew in the mid-single-digits as customers tapped the services of the combined businesses. Finally, the business now has over $400 billion of interest-earning assets, which will generate improved profitability in a more normalized interest rate environment.”