Warren Buffett’s Recent Buys: Top 3 Stocks

1. Capital One Financial Corporation (NYSE:COF)

Stock added to the portfolio in: Q1 2023

Percentage of Berkshire Hathaway’s portfolio as of Q2 2023: 0.39%

Capital One Financial Corporation (NYSE:COF) is an American bank holding company headquartered in Richmond, Virginia, USA. Berkshire Hathaway added the banking firm to its portfolio in the first quarter of 2023 with 9.922 million shares worth $954.099 million. In the second quarter, Warren Buffett’s firm increased its holdings in Capital One Financial Corporation (NYSE:COF) by 26% to 12.471 million shares worth $1.364 billion.

According to the Insider Monkey database, Capital One Financial Corporation (NYSE:COF) was owned by 51 hedge funds in Q2 2023. The company was a part of 12 billionaire-owned or managed hedge funds in the quarter including Steve Cohen’s Point72 Asset Management which increased its stake by 205% in Capital One Financial Corporation (NYSE:COF) in the second quarter to 1.365 million shares, valued at $149.3 million.

ClearBridge Investments made the following comment about Capital One Financial Corporation (NYSE:COF) in its first quarter 2023 investor letter:

“We also added Capital One Financial Corporation (NYSE:COF), a largely domestic diversified financial services company with a focus on credit cards that also operates a leading auto lending business. We believe recent regulatory changes such as the Current Expected Credit Losses (CECL) methodology of the U.S. Treasury and the ability of credit card companies to manage credit risks have improved the risk profile of leading credit card businesses but have been underappreciated by the market. With its substantial financial reserves, we believe that Capital One is well-positioned to navigate future economic uncertainty. Additionally, we believe this current market and credit cycle is fundamentally different than prior ones due to stronger consumer balance sheets, excess savings, strong wage growth and strong employment environment. As a result, we believe Capital One’s current price has already been overly discounted, and we expect it to offer compelling upside despite further risks of drawdown when a recession emerges.”

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