Warren Buffett’s 5 New Stock Picks Since 2022 Market Peak

4. Capital One Financial Corporation (NYSE:COF)

Berkshire Hathaway’s Equity Stake in Q3 2023: $1.21 Billion
Stock Gain since Buffett Investment: 2%
Number of Hedge Fund Holders: 49

Capital One Financial Corporation (NYSE:COF) is another Buffett new stock pick since 2022 in the financial services sector that provides various financial products and services. Capital One Financial Corporation (NYSE:COF) accepts checking accounts, money market deposits and savings deposits.

Buffett acquired stakes worth $954 million at the start of 2022 as the overall market was deep into bear territory. The investment has since gained 2%, with Berkshire Hathaway exiting Q3 2023 with stakes worth $1.2 billion, accounting for 0.38% of the portfolio. Capital One Financial Corporation (NYSE:COF) also boasts a 2.25% dividend yield.

In its Q3 2023 investor letter, Davis New York Venture Fund shared its thoughts on Capital One Financial Corp. (NYSE:COF): 

“In spring 2023, a number of high-profile regional banks, none of which we owned, collapsed over the course of a few weeks. In contrast, the select, large banks we own, including Capital One Financial, actually saw deposit inflows and increasing profits, reinforcing our thesis that high-quality financial services companies remain among the most misunderstood and attractive sectors of the market. This stress test models a dramatic recession—one meaningfully worse than the great financial crisis of 2008-2009. It includes a 3.5% decline in gross domestic product, a 10% unemployment rate, a 37% decline in residential real estate, a 40% decline in commercial real estate and a 55% decline in the stock market. The resilience and strength required to weather such an economic storm combined with proven economies of scale in branding and technology should drive DNYVF market share gains and growth for years to come. Trading at some of the lowest valuations in the market, our financial sector holdings—such as Capital One Financial, deserve to be revalued upwards over time. In the meantime, increasing dividends and a shrinking share base create value while we wait.”

[/company-follow-email]