Charlie Munger’s 2 Favorite Stock Picks

In this article, we discuss Charlie Munger’s two favorite stock picks. If you want to read about some more stocks in the Charlie Munger portfolio, go directly to Charlie Munger’s Thoughts on China and His 5 Favorite Stock Picks. 

2. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Holders: 46 

U.S. Bancorp (NYSE:USB) is a financial services holding firm. According to the latest 13F filings, Daily Journal Corporation owned 140,000 shares in the company at the end of December 2021 worth $8.3 million, representing 3.04% of the portfolio. The fund did not register new activity around the stock during the fourth quarter of 2021 compared to third quarter data. 

On March 28, Morgan Stanley analyst Betsy Graseck kept an Equal Weight rating on U.S. Bancorp (NYSE:USB) stock with a price target of $66, noting that higher inflation for prolonged periods would slow growth and lead to a recession, increasing credit risks. 

At the end of the fourth quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $7.9 billion in U.S. Bancorp (NYSE: USB), compared to 42 the preceding quarter worth $8.3 billion.

Among the hedge funds being tracked by Insider Monkey, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in U.S. Bancorp (NYSE:USB) with 126 million shares worth more than $7 billion. 

In its Q4 2020 investor letter, Mairs & Power, an asset management firm, highlighted a few stocks and U.S. Bancorp (NYSE:USB) was one of them. Here is what the fund said:

“On the negative side, one of the Fund’s biggest detractor in 2020 was U.S. Bancorp (USB). Like all banks, U.S. Bank was hurt by the difficult interest rate environment and credit cycle concerns. We believe banks are strong enough to survive the current sector doldrums, and they remain some of the market’s most attractive opportunities.”