Warren Buffett’s Berkshire Hathaway holds a $296 billion portfolio. 39% of this is invested in 11 financial stocks. American Express and Bank of America are the second and third largest holdings, making up 16.3% and 12.1% of the portfolio respectively.
Other significant financial holdings include Moody’s at 4.1%, U.S. Bancorp at 2.4%, and Bank of New York Mellon at over 1%. Smaller positions are held in Mastercard, Visa, Capital One Financial, Ally Financial, Nu Holdings, and Jefferies Financial Group. Jefferies and American Express shares have skyrocketed 88% and 70% in the past 12 months.
Capital One, Citigroup, and Bank of America have also performed well. Ally Financial, despite slower growth, has an attractive P/E ratio of 8.5. Citigroup trades below 11 times forward earnings. For income investors, Ally Financial and Citigroup offer forward dividend yields of 3% and 2.74%.
Buffett’s notable financial holdings
Many of Buffett’s other financial stocks have yields under 1%. Nu Holdings does not pay dividends.
Analysts project Nu Holdings to have the highest growth potential over the next 12 months at nearly 22% upside. Bank of America, Chubb, Ally, and Jefferies are also expected to deliver double-digit gains. While Buffett may prefer American Express long-term, Wall Street sees Nu Holdings as the standout for 2025.
This fast-growing Latin American digital bank leader dominates in Brazil with promising prospects in Mexico and Colombia. Its robust growth opportunities appeal to growth investors despite no dividend. These varied financial stocks in Berkshire’s portfolio offer different levels of growth potential and dividend yields to suit investor strategies.
Buffett’s choices provide valuable insight for those seeking to generate income and returns in the current market landscape.
