In this article, we will take a look at some of the best holding company stocks to invest in.
What if you could invest in multiple businesses, ranging across various sectors and industries, all through one stock? That’s the power of a holding company. The enterprise, operating as the parent company, owns and controls the interests of other businesses, known as the subsidiaries.
In these times of market uncertainty, it’s important to keep stocks that are safe yet valuable, and this is exactly why you should have a stock of a holding company on your radar. From minimal risk to property and tax advantages, the list in favor of investing in such companies goes on.
Of particular importance is the research conducted by David Ficbauer and Maria Reznakova on “Holding company and its performance,” highlighting that the ownership of such stocks translates to improved cash flow management, less need for the capital invested and bank loans, and a better negotiating position with business partners. Given this, we will take a look at some of the best company holding stocks to invest in.
A business person holding a graph representing the performance of the company’s assets investments.
Our Methodology
In selecting the 9 best holding company stocks to invest in, we have only considered those stocks that have positive one-year price targets, as per the analysts at Yahoo Finance. These stocks are then ranked according to the number of hedge fund holdings, extracted from Insider Monkey’s first-quarter database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
9. James River Group Holdings, Ltd. (NASDAQ:JRVR)
Number of hedge fund holdings: 14
The U.S. District Court, Southern District of New York, has dismissed a lawsuit against James River Group Holdings, Ltd. (NASDAQ:JRVR) filed by Fleming Intermediate Holdings LLC. The lawsuit, initiated on July 15, 2024, accused James River Group of securities fraud and violation of contract involving Fleming’s purchase of JRG Reinsurance Company Ltd.
As per the company’s statement, Valdean Langenburg is now the Group Chief Information Officer at James River Group Holdings, Ltd. (NASDAQ:JRVR), with Justin Zaharris promoted to Group Chief Claims Officer. Langenburg takes over the role following the retirement of Thomas Peach on July 4, marking the end of over four decades in the information technology sector, including six impressive years as the CIO of James River Group Holdings, Ltd. (NASDAQ:JRVR).
On the other hand, Zaharris previously served as the Vice President, managing claims for the company’s Excess & Surplus Lines segment. With over 20 years of legal, technical, and operational claims expertise in property and casualty, we have good reason to believe that James River Group Holdings, Ltd. (NASDAQ:JRVR) is set to lead the way, powered by its workforce.
James River Group Holdings, Ltd. (NASDAQ:JRVR), headquartered in Bermuda, is a specialty insurance service provider. With two main segments: Excess and Surplus Lines, and Specialty Admitted Insurance, the company is committed to producing strong returns on tangible equity.
8. Yum China Holdings, Inc. (NYSE:YUMC)
Number of hedge fund holdings: 31
As per the company’s announcement on Tuesday, Mr. Zhe (David) Wei has been appointed to the Board of Directors, increasing the Board to 13 directors, out of which 11 are independent. This appointment, effective August 6, 2025, comes as the company plans to expand through 1,600 to 1,800 net new store openings in 2025.
As the Chairman at Yum China Holdings, Inc. (NYSE:YUMC), Fred Hu, states,
“David brings deep insights in the global and China consumer sectors and significant leadership experience in digital and e-commerce.”
In its recent earnings, management pointed to a brighter future, one that is expected to deliver $3 billion to shareholders between 2025 and 2026, in addition to the $1.5 billion it returned to shareholders throughout 2024. Additionally, Yum China Holdings, Inc. (NYSE:YUMC) is dedicated to strategically increasing the mix at a guided range in the years ahead. It’s no secret that the giant has placed “accelerating growths” on top of its menu.
Yum China Holdings, Inc. (NYSE:YUMC) is a Chinese food powerhouse that owns, manages, and franchises restaurants. Incorporated in 1987, the company operates through two segments: KFC and Pizza Hut.
7. Unum Group (NYSE:UNM)
Number of hedge fund holdings: 48
LPL Financial LLC has increased its stake in Unum Group (NYSE:UNM) by nearly 1.5%, as disclosed with the Securities and Exchange Commission. The financial advisor firm now owns a total of 301,684 shares of the stock, including the most recent purchase of 4,455 shares during the quarter. The ownership of the firm is worth $24,575,000, which translates to 0.17% of UNM.
Just recently, the Board of Directors of Unum Group (NYSE:UNM) announced a $0.460 quarterly dividend per its common stock share, reflecting the company’s healthy quarterly dividend yield of 2.6%. The declared dividend will only be paid to stockholders of record as of July 25, 2025, and is scheduled for August 15, 2025.
Analysts at Piper Sandler raised the price target on Unum Group (NYSE:UNM) to $92 from $88, while keeping an Overweight rating. What’s quite praiseworthy is the company’s deal with Fortitude Re that will reduce long-term care risk. The analysts highlight that the recent long-term care (LTC) block sale has resulted in even more financial flexibility for the company and, thus, improved free cash flow conversion.
Unum Group (NYSE:UNM) is a Tennessee-based company that delivers financial protection benefit solutions in the USA, UK, and Poland. Through its four main segments: Unum US, Unum International, Colonial Life, and Closed Block, the company offers its products to employers for the benefit of employees.
6. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of hedge fund holdings: 64
As per the disclosure with the Securities and Exchange Commission, PNC Financial Services Group Inc., a financial services company, has increased its stake in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) by 13.1% during the first quarter. With the purchase of an additional 11,749 shares, the firm now owns 101,515 shares of CRWD.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) has intensified its position in Identity Security, alongside its strong partnership with Zscaler and Cloudflare, to provide a fully integrated cybersecurity solution. What is even more impressive is the giant’s Falcon Flex subscription model that is not only attracting long-term contracts but also enhancing customer loyalty and accelerating multi-module adoption.
The recent activities are indeed a testament to the company’s strong market footing. Despite the competition from Palo Alto Networks’ pending CyberArk acquisition, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is expected to deliver over 20% growth in the next 3 to 5 years. In such a shaky environment, this growth rate is anything but ordinary.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD), based in Texas and incorporated in 2011, is a cybersecurity solutions provider operating in the United States and internationally. The core offerings of the company include cloud-delivered protection for endpoints, cloud workloads, identity, and data, delivered via a SaaS subscription-based model.
5. Wells Fargo & Company (NYSE:WFC)
Number of hedge fund holdings: 88
Wells Fargo & Company (NYSE:WFC) and Google Cloud have announced a strategic collaboration to allow the company to utilize agentic AI at scale. This means that Wells Fargo employees will be well-equipped with AI agents and tools from Google Cloud.
As an early adopter of Google Agentspace, a platform that builds and manages AI agents, Wells Fargo & Company (NYSE:WFC) is on the right track to obtain meaningful insights and power advanced efficiency levels of innovation through agents. These agents will then assist in not only finding and synthesizing information faster but also enhancing operational flexibility.
With a commitment to responsible AI, this partnership is a testament to the company’s modernized financial services and empowered employees. Triggering a new era of agentic deployment across the financial services sector, the two enterprises know what they are doing.
Wells Fargo & Company (NYSE:WFC), headquartered in San Francisco, is a financial services company that was incorporated in 1852. With four main segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management, the company considers satisfying the clients’ financial needs as its mission.
4. Citigroup Inc. (NYSE:C)
Number of hedge fund holdings: 96
Aashish Dhakad has been appointed as the head of the private credit origination division in North America by Citigroup Inc. (NYSE:C). With the bank now pursuing expansion in the evolving private credit market, Dhakad’s role will center around a segment that has gained popularity across traditional banks.
The credit business of Citigroup Inc. (NYSE:C) will now be led by Dhakad, who brings around two decades of industry experience. Having recently worked at Ares Management (NYSE:ARES) as an investment manager, he is well-positioned to execute the transition to a more contemporary business model smoothly.
In recent times, Citigroup Inc. (NYSE:C) has made notable revisions to its strategies, with one of the most significant being the strategy under Jane Fraser, which many believe is a game-changer. The emphasis on reduced capital requirements and enhanced operational flexibility allows the giant to outperform the broader market.
Citigroup Inc. (NYSE:C) is a New York-based financial service holding company that serves a diversified clientele, including consumers, corporations, governments, and institutions. Founded in 1812, the company operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth.
3. The Walt Disney Company (NYSE:DIS)
Number of hedge fund holdings: 104
Benjamin Swinburne, an analyst at Morgan Stanley, has raised the price target on The Walt Disney Company (NYSE:DIS) to $140 per share from $120, with an unchanged “Outperform” rating. This surge of about 19% from the current level is what the analyst describes as “being on track for sustained earnings growth in the coming years.”
The stance comes at a time when investors eye the company’s fiscal third-quarter earnings release, set for Wednesday. From what we can expect, The Walt Disney Company (NYSE:DIS) is well-positioned not only to recover but also to surpass its pre-COVID earnings peak by 2027. Much of the optimism stems from the giant’s Experiences segment, which centers around its theme parks, resorts, and streaming businesses.
Additionally, the consumer travel and discretionary spending rebound, together with today’s engagement in Disney’s parks and entertainment venues, is driving The Walt Disney Company (NYSE:DIS) to rebuild a stable and evolving earnings base.
The Walt Disney Company (NYSE:DIS) is a California-based entertainment company that operates through three segments, namely Entertainment, Sports, and Experiences. Founded in 1923, the company is dedicated to entertaining, informing, and inspiring people globally through the art of storytelling.
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of hedge fund holdings: 125
Brian Meredith, an analyst at UBS Group AG, has raised the price target on Berkshire Hathaway Inc. (NYSE:BRK-B) to $597, up from $595, with an unchanged “Buy” rating. What the financial service provider highlights is the company’s recent operating earnings forecast, surpassing expectations.
Meredith notes that the operating earnings of $7,760 for “A” shares and $5.17 for “B” shares are 2% higher than UBS’s estimates of $7,595 and $5.06 for Class A and Class B, respectively. Although the results posted reflect an earnings drop of 4%, Berkshire Hathaway Inc. (NYSE:BRK-B) is believed to grow and deliver promising results.
Analysts generally view Berkshire Hathaway Inc. (NYSE:BRK-B) as following the rails of disciplined and opportunistic investment deployment. Many are of the view that the company’s core segments, particularly insurance, BNSF, energy, and manufacturing, are currently undervalued. The giant’s unique defensive value, combined with its deep liquidity, makes it a case like none other.
Berkshire Hathaway Inc. (NYSE:BRK-B) is a Nebraska-based holding company that, together with its subsidiaries, provides insurance, freight rail transportation, and utility services worldwide. Founded in 1998, the company is committed to delivering the right parts on time.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of hedge fund holdings: 273
Hoxton Planning & Management LLC, a leading investment advisor, has increased its stake in Meta Platforms, Inc. (NASDAQ:META) in the first quarter, as per the company’s recent disclosure with the Securities and Exchange Commission (SEC). With an ownership of about 0.7% of the company’s stock, the fund has acquired 3,281 shares worth $1,891,000.
We have seen how Meta Platforms, Inc. (NASDAQ:META) is intensifying its AI investments that have already started to deliver strong returns. Greater platform usage, together with elevated ad pricing, makes it a better alternative to a business like Google. As management recently revealed, the cost discipline and capex investments have started to pay off.
With such optimism in the market, Loop Capital has reiterated its “Buy” rating on Meta Platforms, Inc. (NASDAQ:META), while increasing its price target to $980.00 from $888.00, signaling an upside of nearly 28.36%. This surge stems from what the research firm cites as “meaningful revenue growth acceleration and strong outlook.”
Meta Platforms, Inc. (NASDAQ:META) is a California-based company that develops products enabling people to connect and share via mobile devices, personal computers, reality headsets, and wearables. Incorporated in 2004, the company operates through two segments: Family of Apps (FoA) and Reality Labs (RL).
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
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