In this piece, we will take a look at the 15 biggest holding companies in the world.
A holding company is quite common in the business world, especially when it comes to large firms operating in lucrative industries such as finance. They are created due to the fact that holding companies and their subsidiaries are separate entities. So if the subsidiary encounters any problems, or goes bankrupt for instance, the parent will be shielded from the subsequent liability requirements.
In the financial world, there are different kinds of firms that are involved in the business of investing in other companies. Apart from holding companies, hedge funds and mutual funds also acquire an interest in firms. However, the primary difference between these and a holding company is that the former two do not acquire a controlling stake that provides them with the ability to set management and decide on the long term strategic objectives of the target firm. However, a holding company generally does acquire a controlling stake, and due to this, it is also entitled to the profits of a subsidiary. The percentage of the share in profits depends on the controlling stake and is listed after the subsidiary has accounted for all business expenses, cost of goods sold, interest, and tax payments.
Holding companies also offer tax advantages, if the parent company is headquartered in a low tax rate region. Additionally, the subsidiaries can either be acquired through purchasing shares or if a larger entity decides to spin off a business unit.
There are some limitations to a holding company though. For instance, a holding company cannot acquire a stake in either an S Corp or a sole proprietorship. S companies are exempt from paying taxes, and instead, their profits are routed back to the owners who then pay income taxes. Additionally, while the picture might be rosy for the parent, it comes with a myriad of risks for the subsidiary. The subsidiary cannot raise capital by issuing new shares, and it is also at risk if the parent runs into legal troubles. Finally, multinationals often face difficulties in transferring their profits across countries due to a lack of standardized tax rules that leads to double taxation on the profits depending on the route that the profits take from the subsidiaries to the parent.
With these details in mind, it is time to take a look at some of the biggest holding companies in the world. Most of these are banks, but there are others as well. Renowned names include JPMorgan Chase & Co. (NYSE:JPM), Johnson & Johnson (NYSE:JNJ), and Berkshire Hathaway Inc. (NYSE:BRK-B).
Our Methodology
We studied several different industries to see which major players are structured as holding companies. These are then ranked through their market capitalization, and hedge fund sentiment courtesy of Insider Monkey’s 920 fund survey for this year’s third quarter is also provided.
Biggest Holding Companies in the World
15. The PNC Financial Services Group, Inc. (NYSE:PNC)
Market Capitalization as of November 25th, 2022: $68 billion
The PNC Financial Services Group, Inc. (NYSE:PNC) is a financial services company that was set up in 1852 and is headquartered in Pittsburgh, Pennsylvania. The firm provides retail, corporate, and institutional banking services.
The PNC Financial Services Group, Inc. (NYSE:PNC) had a strong third fiscal quarter that saw the bank beat its peers in both interest income and net interest income growth. These grew by 39% and 22% respectively, and the firm also led the peer group on the year to date metrics. Additionally, The PNC Financial Services Group, Inc. (NYSE:PNC) was the only bank that grew its earnings per share (EPS) year to date, annually, as of the third quarter.
43 out of the 920 hedge funds part of Insider Monkey’s Q3 2022 poll had invested in The PNC Financial Services Group, Inc. (NYSE:PNC).
Out of these, The PNC Financial Services Group, Inc. (NYSE:PNC)’s largest shareholder is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital which owns 1.7 million shares that are worth $262 million.
Along with Johnson & Johnson (NYSE:JNJ), JPMorgan Chase & Co. (NYSE:JPM), and Berkshire Hathaway Inc. (NYSE:BRK-B), The PNC Financial Services Group, Inc. (NYSE:PNC) is one of the largest holding companies in the world.
14. Citigroup Inc. (NYSE:C)
Market Capitalization as of November 25th, 2022: $94 billion
Citigroup Inc. (NYSE:C) is a financial holding company that owns consumer and investment banking divisions. These provide a variety of services such as accounts, card services, and investment advice. The firm is headquartered in New York, New York, United States.
Citigroup Inc. (NYSE:C) is aggressively targeting the Middle East to take advantage of the growing IPO boom in the region. The firm has reportedly increased its investment banking team in the region by 50% over the past two years, with strategic decision making coming at a time when the Middle East stock market is booming due to the rising oil prices.
85 out of the 920 hedge funds polled by Insider Monkey during this year’s third quarter had held a stake in Citigroup Inc. (NYSE:C).
Citigroup Inc. (NYSE:C)’s largest shareholder is Warren Buffett’s Berkshire Hathaway which owns 55 million shares that are worth $2.2 billion.
13. HSBC Holdings plc (NYSE:HSBC)
Market Capitalization as of November 25th, 2022: $118 billion
HSBC Holdings plc (NYSE:HSBC) is a diversified bank that engages in wealth management, personal banking, commercial banking, and global banking. The firm is headquartered in London, the United Kingdom.
HSBC Holdings plc (NYSE:HSBC) announced in November 2022 that it is expanding its blockchain system for settling financial transactions by adding support for the offshore Chinese Yuan. This extension is only for the bank’s transactions with Wells Fargo.
Insider Monkey’s third quarter of 2022 survey covering 920 hedge funds revealed that 10 had bought HSBC Holdings plc (NYSE:HSBC)’s shares.
Jim Simons’ Renaissance Technologies is HSBC Holdings plc (NYSE:HSBC)’s largest investor. It owns 2.3 million shares that are worth $61 million.
12. The Goldman Sachs Group, Inc. (NYSE:GS)
Market Capitalization as of November 25th, 2022: $132 billion
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the oldest banks in the world that was set up in 1869 and is headquartered in New York, New York, the United States. It offers asset management, investment management, wealth management, and banking services.
The Goldman Sachs Group, Inc. (NYSE:GS)’s shares are up by 15% over the past month, as the shift in market sentiment about a potential recession has made investors flock to the bank’s shares. The share price growth has outpaced the S&P 500 index that is up by 5.75% over the same time period.
Insider Monkey took a look at 920 hedge funds for their third quarter of 2022 investments to discover that 69 had invested in The Goldman Sachs Group, Inc. (NYSE:GS).
The Goldman Sachs Group, Inc. (NYSE:GS)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 4.7 million shares that are worth $1.3 billion.
11. The Charles Schwab Corporation (NYSE:SCHW)
Market Capitalization as of November 25th, 2022: $152 billion
The Charles Schwab Corporation (NYSE:SCHW) is an American firm that is headquartered in Westlake, Texas. It provides banking, investment advisory, trust, retirement plan, mutual fund clearing, and other services.
The Charles Schwab Corporation (NYSE:SCHW) is one of the largest investment banks in America, since it operates more than 33 million active brokerage accounts, 1.6 million bank accounts, and has 2.2 million corporate retirement plan participants. It gathers deposits and then invests them for interest income; a strategy that benefits The Charles Schwab Corporation (NYSE:SCHW) in the current high interest rate environment.
75 out of the 920 hedge funds polled by Insider Monkey for their September quarter of 2022 holdings had held a stake in The Charles Schwab Corporation (NYSE:SCHW).
The Charles Schwab Corporation (NYSE:SCHW)’s largest shareholder is Rajiv Jain’s GQG Partners which owns 16.5 million shares that are worth $1.1 billion.
10. Comcast Corporation (NASDAQ:CMCSA)
Market Capitalization as of November 25th, 2022: $154 billion
Comcast Corporation (NASDAQ:CMCSA) is a media company with a vast list of businesses in its portfolio. The firm is based in Pittsburgh, Pennsylvania.
Some of Comcast Corporation (NASDAQ:CMCSA)’s properties include Xfinity, Leisure Arts, Marine Miners, Philadelphia Flyers, Hitz, and Comcast Technology Solutions. The firm pays a 27 cent dividend for a 3.03% yield, and it returned $1.2 billion to shareholders in form of dividends during its latest quarter.
73 out of the 920 hedge funds polled by Insider Monkey during this year’s third quarter had bought Comcast Corporation (NASDAQ:CMCSA)’s shares.
Comcast Corporation (NASDAQ:CMCSA)’s largest shareholder is Jean-Marie Eveillard’s First Eagle Investment Management which owns 31 million shares that are worth $928 million.
9. Morgan Stanley (NYSE:MS)
Market Capitalization as of November 25th, 2022: $154 billion
Morgan Stanley (NYSE:MS) is a financial holding company that has wealth management, investment management, and institutional securities businesses. The firm is headquartered in New York, New York, the United States.
Morgan Stanley (NYSE:MS) launched a new exchange traded fund (ETF) in November 2022 in the form of its Innovator Equity Management Floor ETF. This fund consists of technology heavy hitters such as Apple, Amazon, Google, and Tesla. The fund’s largest stake is in Apple, and the largest two segments are information technology and healthcare.
Insider Monkey’s Q3 2022 survey of 920 hedge funds revealed that 52 had held a stake in Morgan Stanley (NYSE:MS).
Ken Fisher’s Fisher Asset Management is Morgan Stanley (NYSE:MS)’s largest investor. It owns 18 million shares that are worth $1.4 billion.
8. The Walt Disney Company (NYSE:DIS)
Market Capitalization as of November 25th, 2022: $180 billion
The Walt Disney Company (NYSE:DIS) is an iconic entertainment company that operates theme parks and produces movies. The firm is headquartered in Burbank, California.
The Walt Disney Company (NYSE:DIS) made headlines in November 2022, when a surprise announcement revealed that its former chief executive officer Mr. Bob Iger would return to his job. The reveal marked the largest single day gain in its share price in two years, when the stock jumped by 6.3% on the market.
112 out of the 920 hedge funds polled by Insider Monkey for this year’s third quarter had invested in The Walt Disney Company (NYSE:DIS).
The Walt Disney Company (NYSE:DIS)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 5.1 million shares that are worth $484 million.
7. Wells Fargo & Company (NYSE:WFC)
Market Capitalization as of November 25th, 2022: $181 billion
Wells Fargo & Company (NYSE:WFC) is one of the oldest financial companies in the world as it was set up in 1852 and is headquartered in San Francisco, California. The firm provides consumer and commercial financial services, alongside also engaging in investment banking and mortgage finance.
Wells Fargo & Company (NYSE:WFC) had a strong third fiscal quarter which saw it beat analyst EPS estimates by a mile. The firm posted $1.3 in EPS while the consensus had stood at $1.09. Additionally, the quarter saw Wells Fargo & Company (NYSE:WFC) grow its average loan book to a whopping $945 billion.
As part of their Q3 2022 holdings, 77 out of the 920 hedge funds polled by Insider Monkey had invested in Wells Fargo & Company (NYSE:WFC).
Wells Fargo & Company (NYSE:WFC)’s largest investor is Boykin Curry’s Eagle Capital Management which owns 23 million shares that are worth $927 million.
6. Bank of America Corporation (NYSE:BAC)
Market Capitalization as of November 25th, 2022: $303 billion
Bank of America Corporation (NYSE:BAC) is another multi century old bank. It was set up in 1784, right at the time of the American revolution, and is headquartered in Charlotte, North Carolina.
Bank of America Corporation (NYSE:BAC) saw its credit card customers suffer the brunt of the current inflationary wave as it reported that during October 2022, the credit card delinquency rate had increased to 0.98% from 0.92% in September. However, it was still lower than the pre pandemic level of 1.62% in October 2019.
Insider Monkey took a look at 920 hedge fund holdings for this year’s third quarter to discover that 97 had bought a stake in Bank of America Corporation (NYSE:BAC).
Out of these, Warren Buffett’s Berkshire Hathaway is Bank of America Corporation (NYSE:BAC)’s larget investor through a $30 billion stake that comes via 1 billion shares.
Bank of America Corporation (NYSE:BAC) joins JPMorgan Chase & Co. (NYSE:JPM), Johnson & Johnson (NYSE:JNJ), and Berkshire Hathaway Inc. (NYSE:BRK-B) in our list of the world’s largest holding companies.
5. PepsiCo, Inc. (NASDAQ:PEP)
Market Capitalization as of November 25th, 2022: $253 billion
PepsiCo, Inc. (NASDAQ:PEP) is a food and beverage company that sells products such as snacks, carbonated drinks, cereals, rice, pasta, and more. It is headquartered in Purchase, New York, the United States.
PepsiCo, Inc. (NASDAQ:PEP)’s third quarter results beat analyst estimates as the firm posted $1.97 in non-GAAP earnings per share (EPS) and $22 billion in revenue. The revenue marked an 8.8% annual growth despite a 3% exchange rate impact. PepsiCo, Inc. (NASDAQ:PEP)’s year to date revenue growth is 7.7%, as it capitalizes on the inflationary wave but maintains strong sales even as purchasing powers drop.
By the end of Q3 2022, 72 out of the 920 hedge funds part of Insider Monkey’s survey had bought PepsiCo, Inc. (NASDAQ:PEP)’s shares.
PepsiCo, Inc. (NASDAQ:PEP)’s largest investor is Terry Smith’s Fundsmith LLP which owns 7.1 million shares that are worth $1.1 billion.
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4. The Procter & Gamble Company (NYSE:PG)
Market Capitalization as of November 25th, 2022: $348 billion
The Procter & Gamble Company (NYSE:PG) is a household and personal products company that was set up in 1837 and is headquartered in Cincinnati, Ohio. The firm provides beauty, health, baby, and family care products.
The Procter & Gamble Company (NYSE:PG) is one of the largest consumer goods companies in the world, with its revenues exceeding $80 billion. Despite its scale, the firm’s stock has matched the S&P 500 index in terms of returns over the past five years. Over the past four years, its revenue has grown by 4.7% and non GAAP EPS has grown by 8.3% on average.
69 out of the 920 hedge funds polled by Insider Monkey during this year’s third quarter had invested in The Procter & Gamble Company (NYSE:PG).
The Procter & Gamble Company (NYSE:PG)’s largest shareholder is Ray Dalio’s Bridgewater Associates which owns 6.6 million shares that are worth $835 million.
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3. JPMorgan Chase & Co. (NYSE:JPM)
Market Capitalization as of November 25th, 2022: $401 billion
JPMorgan Chase & Co. (NYSE:JPM) is one of the oldest banks in the world as it was set up in 1799 and is headquartered in New York. New York, the United States. The firm provides consumer, corporate, investment, and commercial banking services.
JPMorgan Chase & Co. (NYSE:JPM) is a heavy hitter in the banking industry. Its balance sheet of $3.8 trillion makes the Bank of England look tiny in comparison, with the latter having a mere $102 billion under its belt. Additionally, the bank is on a growth track in the wake of the coronavirus pandemic, since its trailing twelve month free cash flow of $132 billion is significantly higher than 2021’s reading of $78 billion.
By the end of this year’s September quarter, 110 out of the 920 hedge funds polled by Insider Monkey had invested in JPMorgan Chase & Co. (NYSE:JPM).
JPMorgan Chase & Co. (NYSE:JPM)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 7.8 million shares that are worth $820 million.
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2. Johnson & Johnson (NYSE:JNJ)
Market Capitalization as of November 25th, 2022: $463 billion
Johnson & Johnson (NYSE:JNJ) is an American company that offers consumer health and pharmaceutical products. It is based in Brunswick, New Jersey.
Despite being one of the largest companies in the world, Johnson & Johnson (NYSE:JNJ) is valued at approximately 5x of its sales and 17x of its earnings, indicating the market’s confidence in a firm that is very likely to be a strong stock pick should a recession hit. The firm is also acquiring a medical company for $16 billion to further grow its subsidiary portfolio.
85 out of the 920 hedge funds part of Insider Monkey’s Q3 2022 survey of 920 hedge funds had bought Johnson & Johnson (NYSE:JNJ)’s shares.
Johnson & Johnson (NYSE:JNJ)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 5.9 million shares that are worth $967 million.
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1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Market Capitalization as of November 25th, 2022: $699 billion
Berkshire Hathaway Inc. (NYSE:BRK-B) is the largest holding company in the world, and perhaps the most well known as well. Headed by the legendary Warren Buffett, the firm has stakes in banking, financial services, media, automotive manufacturing, semiconductors, consumer technology, and renewable energy businesses.
Berkshire Hathaway Inc. (NYSE:BRK-B)’s third quarter portfolio sent shock waves around the industry when it disclosed that it had bought a $4.1 billion stake in the Taiwan Semiconductor Manufacturing Company (NYSE:TSM). TSMC is the world’s largest contract chip manufacturer, and Berkshire Hathaway Inc. (NYSE:BRK-B)’s decision to invest in it shows the confidence that the investment company has in both the industry and the company.
Insider Monkey studied 920 hedge fund portfolios for this year’s September quarter to discover that 104 had invested in Berkshire Hathaway Inc. (NYSE:BRK-B).
Out of these, Michael Larson’s Bill & Melinda Gates Foundation Trust is Berkshire Hathaway Inc. (NYSE:BRK-B)’s largest investor through a $7.9 billion stake that comes courtesy of 29 million shares.
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Disclosure: None. 15 Biggest Holding Companies in the World is originally published on Insider Monkey.
