Investing

Warren Buffett's Favorite Financial Stocks

Douglas A. McIntyre

Published: May 22, 2016 9:16 am

Last Updated: January 13, 2020 7:45 am

24/7 Wall St. recently released an article entitled “Major Changes in Warren Buffett and Berkshire Hathaway Stock Holdings.” Among these were several of the largest financial firms in the United States

Being the wealthiest man in the world on paper tends to draw some attention. This is why investors and outsiders watch new equity investment positions taken by, or sold by, Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A). The public U.S.-traded equity holdings for the period ended March 31, 2016 were listed as $128.569 billion.

These holding include banks and investment banks, and credit card companies. A look at the list:

1. American Express Co. (NYSE: AXP) has been listed as the same 151.6 million shares for years now, and it was worth $9.31 billion at the end of March. Buffett has now held on to American Express shares so long he probably worries about the capital gains tax he would pay versus how much Amex shares have fallen from their highs.
2. Wells Fargo & Co. (NYSE: WFC) was the same stake of 479.704 million shares compared with the end of 2015. That stake was grown in the fourth quarter from 470.29 million shares at the end of September. Buffett has grown his stake through time, but at a slower rate in the past year or more. Increasingly closer to being a 10% holder, Buffett may have reached the point that it is harder to grow that stake without more regulatory and more governance issues. The value of the Wells Fargo stake at the end of March was $23.2 billion. History has shown that Buffett would like to just keep buying and buying this stock.
3. Bank of New York Mellon Corp. (NYSE: BK) was 20.112 million, roughly the same as the prior quarter, but versus 24.6 million shares in the past.
4. Goldman Sachs Group Inc. (NYSE: GS) was the same stake of 10.959 million shares, but this had been as high as 12.631 million shares prior to the end of 2015.
5. M&T Bank Corp. (NYSE: MTB) was the same position at 5.38 million shares — same as always.
6. MasterCard Inc. (NYSE: MA) was listed as 4.934 million shares, worth some $466 million, but this was 5,229,756 shares at the end of 2015.
7. U.S. Bancorp (NYSE: USB) was the same position of 85.06 million shares in March, versus 2015, but that stake had been raised slightly in June versus the 83.77 million shares at the end of March. That has grown from 80.09 million shares at the end of 2014.

All of Buffett’s holdings for the period, in the 24/7 Wall St. study.