Buffett likes financial stocks the most. Relying on the floating savings of insurance companies he holds, he has achieved the financial freedom of an “empty glove white wolf,” and has also continued to invest in financial stocks to achieve sustainable return growth.
In his US stock portfolio, except for the one with the highest share of shares $Apple (AAPL.US)$In addition, the second-largest holdings have just announced the results for the third quarter ended September 30, 2022 $Bank of America (BAC.US)$。 As of June 30, 2022, out of 49 stocks held in his US stock portfolio, there were 16 financial stocks.
Even when the Federal Reserve changed its monetary policy, he did not change his investment portfolio. Is it because bank stocks have the appeal of crossing cycles, or is it because the valuation of these bank stocks has not reached a level suitable for sell-off?
How to evaluate the performance of the top five Wall Street banks?
After Wall Street plummeted in early 2020 and the Federal Reserve began to release water vigorously, US bank stocks experienced a massive rise in stock prices. Since this year, with the Federal Reserve's monetary policy shift, bank stocks have also followed the decline in the market.
However, since banks took the lead in starting the third quarter performance season, the unusual state of bank stocks has become a new force driving the market to rise. In fact, looking at the performance of many major banks in the third quarter, it is far from good. Presumably because expectations are too poor, performance that slightly exceeds expectations can easily cause a market with no good products to buy in a hurry to perform.
Below, let's take a look at five Wall companies...