Top 10 Stocks to Buy According to Lakehouse Capital

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7. The Charles Schwab Corporation (NYSE:SCHW)

Lakehouse Capital’s Equity Stake: $12.2 Million

Number of Hedge Fund Holders: 102

The Charles Schwab Corporation (NYSE:SCHW) is one of the Top 10 Stocks to Buy According to Lakehouse Capital. The company received the results of the Federal Reserve’s 2025 Comprehensive Capital Analysis and Review (CCAR). On the basis of these results, the company’s calculated stress capital buffer (SCB) remains well below the 2.5% minimum, leading to the SCB at that floor. The 2.5% SCB will be applicable to Schwab for a four-quarter period beginning October 1, 2025.

The Charles Schwab Corporation (NYSE:SCHW)’s Common Equity Tier 1 (CET1) ratio of 32% as of March 31, 2025 remained well in excess of the regulatory minimum of 4.5% combined with the SCB of 2.5% because of the relatively low risk nature of the company’s balance sheet assets. The Charles Schwab Corporation (NYSE:SCHW)’s robust organic growth, mainly in Net New Assets, along with effective capital management, can benefit the shareholders. The core net new assets brought by new and existing clients saw an increase of 13% YoY in May 2025 to reach $35.0 billion.

In Q1 2025, the company saw daily average trading volume grow by 17% quarter-over-quarter because of the sharp increase in market volatility. Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Strength in Financials came from specialty insurer Arch Capital Group Ltd. and brokerage firm The Charles Schwab Corporation (NYSE:SCHW). Schwab’s shares outperformed for a second consecutive quarter, helped by an improved earnings outlook. After reaching trough levels last year, Schwab’s cash balances continued to trend higher during the quarter. Investors believe Schwab will use these balances to pay down higher cost borrowings, which should drive net interest income and earnings higher.”

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