Warren Buffett reduces bank stock exposure by selling 4, keeps shares in American Express and Ally Financial.

From Nasdaq: 2025-03-04 05:43:00

Warren Buffett, known for his interest in banking stocks, has reduced Berkshire Hathaway’s exposure to banks by selling shares of four out of six bank stocks in the fourth quarter of 2024. Notably, he has retained holdings in American Express and Ally Financial, indicating continued bullishness in the banking sector despite economic uncertainties.

Buffett’s recent stock sales included Bank of America, Capital One, Citigroup, and Nu Holdings. However, American Express and Ally Financial were untouched, with American Express being Berkshire’s second-largest stock investment valued at nearly $46 billion. Ally Financial, a smaller investment at $1.1 billion, is the largest auto lender in the US and focusing on core operations for growth.

American Express has been a strong performer in Berkshire’s portfolio, offering a total return of 327% over the past decade. With a strong asset quality and a low charge-off rate of 1.9%, Amex has adapted well to changing consumer preferences. On the other hand, Ally Financial’s focus on auto lending and consumer banking, coupled with its profitable margins, make it an attractive investment option.

While Buffett’s selling decisions remain undisclosed, his continued investment in American Express and Ally Financial suggests confidence in their long-term potential. Both companies offer stability and growth prospects in the financial services industry. Investors are advised to consider these factors before making investment decisions in American Express or other stocks.



Read more at Nasdaq: Warren Buffett Just Sold 4 Bank Stocks, but Hasn’t Unloaded a Single Share of These 2