2 Financial Stocks to Buy That Berkshire Hathaway Kept While Selling Visa and Mastercard
Key PointsAmerican Express targets businesses and affluent consumers who are willing to pay for premium benefits.
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has demonstrated time and again his exceptional abilities in navigating the stock market. Over a six-decade-long career, he has consistently outperformed market benchmarks, and his investment strategies have been widely studied and emulated across generations. However, Berkshire Hathaway, under Buffett's leadership and now that of his successor, Greg Abel, has shown a willingness to make substantial changes to its portfolio.
This year, Berkshire closed its stake in two major players in the credit card industry, Visa and Mastercard. However, the company is not entirely withdrawing from the credit business, as it still maintains significant investments in two other companies that operate within the same sector. These two companies are American Express and Moody's, which Berkshire Hathaway holds with 22% and 14% stakes, respectively.
Both American Express and Moody's are classic Berkshire Hathaway investments that share several key characteristics. These companies boast reliable earnings, a strong competitive advantage in their respective markets, and have the potential for long-term growth. As such, they represent two of the best financial stocks to consider for investment, especially given Berkshire Hathaway's track record of prudent and successful investments.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
