Ally Financial Inc. (ALLY): One of the Best Financial Stocks to Buy According to Berkshire Hathaway

We just covered the 10 Best Financial Stocks to Buy According to Warren Buffett and Ally Financial Inc. (NYSE:ALLY) ranks 6th on this list.

Ally Financial Inc. (NYSE:ALLY) 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 2022. Back then, this position comprised just under 9 million shares. By the second quarter of 2022, the fund had increased this holding by over 234%, growing share ownership to 30 million shares. Apart from a minor 3% reduction in the first quarter of 2023, no other buying or selling activity has been registered against this stake since then. Filings for the first quarter of 2026 show that the fund owned 29 million shares in the firm.

In earnings for the first quarter of 2026, Ally Financial Inc. (NYSE:ALLY) posted an adjusted EPS of $1.11, representing a 90% surge year-over-year from $0.58, outpacing Wall Street consensus expectations of $0.94 by more than 18%. The company registered a GAAP net income of $319 million ($0.93 per share), engineering a year-over-year turnaround from the GAAP net loss of $225 million ($0.82 per share) recorded in Q1 2025. Total net revenue jumped 36% year-over-year to $2.10 billion, fueled by surging dealer financial services and elevated yields on new auto loans. Core return on tangible common equity (ROTCE) improved to 11.1%.

While we acknowledge the risk and potential of ALLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALLY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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