I still think of Berkshire Hathaway's (BRK.A 0.46%) (BRK.B 0.38%) portfolio as Warren Buffett's portfolio. The legendary investor's decision to pass the baton as CEO to Greg Abel hasn't changed my view in the slightest. After all, Buffett is still Berkshire's board chairman and its largest shareholder.
Even with Buffett no longer the official public face of Berkshire Hathaway, his fingerprints remain all over the conglomerate's holdings. For example, a whopping 35% of Berkshire's $309 billion portfolio is invested in five financial stocks that Buffett likes.
Image source: The Motley Fool.
Berkshire's top five financial stocks
It probably won't come as a surprise that American Express (AXP 1.39%) ranks as Berkshire's largest financial services holding, accounting for 17.3% of the company's portfolio as of its latest 13-F filing. AmEx is one of Buffett's longest-held positions. He included it among several stocks that he told Berkshire Hathaway shareholders in 2024 that he expected the conglomerate to "maintain indefinitely."
Sure, Buffett is not as big a fan of bank stocks as he once was. However, Bank of America (BAC 2.87%) is Berkshire's second-largest financial stock position and third-largest holding overall. It comprises 9.6% of the company's portfolio.
NYSE: BAC
Key Data Points
Moody's (MCO 4.36%) has two core businesses. It provides risk management services to institutional investors. The company is also one of the largest credit ratings agencies. I suspect that Buffett finds both units appealing. Moody's ranks as Berkshire's sixth-largest holding, accounting for 4.1% of its portfolio.
Chubb (CB +2.21%) is one of Buffett's more significant new positions over the last couple of years. The "Oracle of Omaha" no doubt thoroughly understands Chubb's property and casualty insurance business. Chubb is among Berkshire's top 10 holdings and makes up 3.1% of its portfolio.
Visa (V 0.81%) is another financial stock that seems to be a logical fit for Buffett. The credit card processing giant accounts for roughly 0.9% of Berkshire's portfolio.
How they compare
None of these stocks stands out as head and shoulders above the pack in performance over the last 12 months. American Express, Bank of America, and Chubb are running neck and neck.
But while Visa has delivered the lowest gains over the last 12 months, it's Wall Street's favorite over the next 12 months. The consensus price target for the stock reflects a potential upside of over 20%. Bank of America doesn't lag far behind Visa, though, with a price target that's nearly 20% above its current share price.
NYSE: V
Key Data Points
Bank of America is the clear winner when it comes to dividends. The company's forward dividend yield of 2.1% is well above the yields of the other top four financial stocks in Berkshire's portfolio.
What about valuation? Chubb comes out on top on one metric. Its forward price-to-earnings ratio is 11.3, below the 12.1 forward earnings multiple of second-place Bank of America. However, Bank of America is the winner on valuation with growth factored in. Its price-to-earnings-to-growth (PEG) ratio, which includes analysts' earnings growth projections over the next five years, is 1.0, well below the PEG ratios of the other four stocks.
NYSE: CB
Key Data Points
The best of the bunch for 2026
My view is that all of Berkshire's top five financial stocks are solid long-term picks. I don't think investors would go wrong buying any of them. But which is the best of the bunch for 2026?
Bank of America appears to be the most attractive overall. It ranked either first or second in each of the categories used to compare the five stocks. If the market declines significantly, though, Chubb would likely hold up better than BofA. Still, I'll go with BofA as the best of these five Buffett stocks for the new year.
