Starter Stock Portfolio: 5 Large-Cap Stocks To Buy

In this article, we discuss 5 large-cap stocks to buy for a starter stock portfolio. If you want to see more stocks in this selection, check out Starter Stock Portfolio: 12 Large-Cap Stocks To Buy. 

5. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 68

The Charles Schwab Corporation (NYSE:SCHW) is an American multinational company that provides wealth management, securities brokerage, banking, asset management, and financial advisory services. The Charles Schwab Corporation (NYSE:SCHW)’s Q3 earnings and revenue outperformed Wall Street expectations, as resilient growth in net interest revenue and record retail inflows offset a drop in asset management fees and trading revenue. The Charles Schwab Corporation (NYSE:SCHW) is one of the best large-cap stocks to buy for a starter portfolio. 

On October 18, Deutsche Bank analyst Brian Bedell said The Charles Schwab Corporation (NYSE:SCHW) posted “solid’ Q3 results and he sees the 2% stock selloff on cash sorting fears as being overblown. The selloff is a buying opportunity, said the analyst, who reiterated a Buy rating on the shares.

According to Insider Monkey’s data, 68 hedge funds were bullish on The Charles Schwab Corporation (NYSE:SCHW) at the end of Q2 2022, compared to 78 funds in the prior quarter. Harris Associates is the leading position holder in the company, with 12.7 million shares worth $804.6 million. 

Here is what IP Capital Partners has to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q2 2022 investor letter:

“When we wrote about Charles Schwab in the end-2019 management report, the company managed around $5.5 trillion and had 24.4 million customers when added to the recently acquired TD Ameritrade. A little more than two years later, at the end of the first quarter of 2022, assets under custody jumped to US$ 7.9 trillion and total customers reached 33.6 million, an increase of 44% and 37%, respectively. Of the increase in managed assets, US$ 1 trillion came from funding and US$ 1.4 trillion from the appreciation of the stock of assets. No other financial institution in the world attracted more individual customers than Schwab during this period.

From a revenue point of view, two important effects have occurred in the last two years – and that should be reversed from now on. In terms of trading revenues (about 20% of the total), the company benefited from a period of increased customer activity. In the results of financial intermediation (about 50% of the total), the company suffered from the low interest rate scenario…” (Click here to see the full text)