The legendary investor only owns a few bank stocks, but Capital One is still in the portfolio.
Around the time of several high-profile bank failures in 2023, Warren Buffett chose to get rid of several bank stocks in Berkshire Hathaway‘s (BRK.A 0.74%) (BRK.B 0.35%) portfolio. But there are still a select few in which he’s chosen to invest billions of dollars, and one of them is online-focused regional bank Capital One Financial (COF 0.87%).
Here’s a quick look at how much Capital One stock Buffett owns, how it compares with other Berkshire Hathaway investments, and more.
How much Capital One stock does Warren Buffett own?
First, it’s important to mention that Warren Buffett doesn’t own any Capital One stock in his personal stock portfolio — at least not that we know of. He owns Capital One stock through Berkshire Hathway’s portfolio and is the CEO and largest shareholder of the company.
In Berkshire Hathaway’s stock portfolio, you’ll find 12,471,030 shares of Capital One. As of late June, this investment was worth about $1.72 billion, representing a stake of about 3.3%.
Where Capital One ranks in Berkshire Hathaway’s portfolio
Although a $1.7 billion investment may sound like a lot of money (and it is), Berkshire Hathaway’s portfolio has a market value of about $389 billion, as of this writing. This means that Capital One makes up just 0.4% of the total.
Capital One is the 24th-largest stock position Berkshire Hathaway owns. Among bank stocks, it’s a distant fourth place. Here’s a rundown of the bank stocks Berkshire still owns and the market value of each:
|
Bank |
Value of Berkshire’s Investment |
|---|---|
|
Bank of America |
$41 billion |
|
American Express |
$35 billion |
|
Citigroup |
$3.5 billion |
|
Capital One |
$1.7 billion |
|
Nu Holdings |
$1.4 billion |
|
Ally Financial |
$1.2 billion |
Data source: Berkshire Hathaway SEC filings. Market value as of 6/28/2024.
Why does Warren Buffett like Capital One? There are several possible reasons, such as a discount to book value, the profitability of the credit card business, and the potential implications of its pending acquisition of Discover.
Ally is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has positions in Ally Financial, American Express, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Bank of America and Berkshire Hathaway. The Motley Fool recommends Discover Financial Services and Nu Holdings. The Motley Fool has a disclosure policy.