In this article, we discuss the 10 Best Financial Stocks to Buy According to Billionaires.
Financial stocks had a great run in 2024, jumping over 30% by mid-December and outpacing the broader market. Fidelity noted that concerns about bank failures faded as the economy stayed strong, and improving fundamentals kept the sector on track. With the Fed cutting rates for the first time since the pandemic, lower borrowing costs could boost economic activity, even if they squeeze bank profit margins a bit. There are still risks, like commercial real estate exposure and loan defaults, but the post-election landscape looks favorable, with lighter regulations and more deal-making. Heading into 2025, financial stocks have solid momentum and plenty of tailwinds. This shift is creating fresh opportunities across the financial sector, from capital markets to private credit.
According to Morgan Stanley, capital markets are making a big comeback in 2025, strengthened by lower interest rates, easing inflation, and steady economic growth. After a period of uncertainty, companies and investors are finally feeling confident enough to jump back into mergers, acquisitions, and major spending. With more cash flowing into the market, demand for private credit and infrastructure investments, especially in AI, is on the rise. Private credit is also having a moment, offering companies more flexible financing options. It is growing fast, with assets under management expected to double in the next few years. Many businesses are using private markets to refinance debt and fuel expansion. 2025 is shaping up to be a huge year for strategic deals, leveraged buyouts, and capital raising.
Mergers and acquisitions in financial services are set to stay strong in 2025. After a year of big-money deals in 2024, companies are still looking for ways to grow, stay competitive, and adapt to market shifts. While economic uncertainty and geopolitical tensions remain, financial firms are using M&A to keep up with new technologies, changing customer expectations, and regulatory changes. Many banks and financial institutions are eyeing fintech acquisitions to stay ahead in the digital space while selling off underperforming parts of their business to free up capital for high-growth opportunities. Larger deals are becoming more common, especially as potential financial deregulation in the US could shake up global markets.
Some of the wealthiest billionaires have built some of the world’s largest financial firms or continue to hold major ownership positions in them. These companies specialize in asset management, financial data services, and cryptocurrency trading. Take Warren Buffett, for instance. Investors around the world look to his portfolio for guidance. His investment strategy heavily favors financial stocks, with significant holdings in banks, payment technology firms, and insurance companies. By the end of 2024, he had committed over $100 billion to the financial sector, representing a substantial share of his estimated $267 billion portfolio. Like Buffett, there are lots of billionaire portfolios to watch out for. So, let’s dive into the best financial stocks that Wall Street moguls are backing.
An overhead view of the financial district with busy traders on the trading floor.
Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 10 companies operating in the financial services industry with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Intercontinental Exchange, Inc. (NYSE:ICE)
Number of Billionaire Investors: 18
Intercontinental Exchange, Inc. (NYSE:ICE) provides technology and data solutions to financial institutions, corporations, and governments worldwide. It facilitates trading, clearing, and data services for financial markets, offers pricing and analytics tools for fixed-income assets, and streamlines the US mortgage process with digital solutions. The company was part of 18 billionaire investment portfolios according to latest SEC filings, making it one of the best financial stocks.
On February 25, Intercontinental Exchange, Inc. (NYSE:ICE) exceeded 100 million open contracts on February 20, 2025, an 11% jump year-over-year. The record-breaking numbers include 68.7 million commodity contracts, with 65.3 million in energy alone and 43.8 million in natural gas. Just a day earlier, ICE also saw its biggest natural gas trading volume since 2012, with 3.2 million contracts changing hands.
Intercontinental Exchange, Inc. (NYSE:ICE) declared a $0.48 per share quarterly dividend on February 6, a 6.7% increase from its prior dividend of $0.45. The dividend is payable on March 31, for shareholders of record as of March 17.
ICE reported $698 million in net income for the fourth quarter on $2.3 billion in revenue. GAAP earnings per share came in at $1.21, while adjusted EPS was $1.52. Revenue was up 6% from the previous year because of growth across its exchange, fixed income, and mortgage tech businesses. For the full year, ICE pulled in $4.6 billion in operating cash flow and $3.6 billion in free cash flow. By the end of 2024, the company had $844 million in cash, $20.4 billion in debt, and had paid out over $1 billion in dividends.
On January 6, Raymond James analyst Patrick O’Shaughnessy reaffirmed an Outperform rating on Intercontinental Exchange, Inc. (NYSE:ICE) with a $185 price target, citing its strong, diversified business model. Despite challenges in the Mortgage Tech segment, the analyst expects long-term recovery and continued revenue growth. With ICE trading at 20 times its projected 2026 EPS, he sees it as a solid investment opportunity.
9. Wells Fargo & Company (NYSE:WFC)
Number of Billionaire Investors: 18
Wells Fargo & Company (NYSE:WFC) is a global financial services firm offering banking, investment, mortgage, and commercial finance solutions. It operates through four segments – Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. It is one of the best financial stocks to keep an eye on.
On March 11, Wells Fargo & Company (NYSE:WFC) announced that it is suing JPMorgan Chase over a $481 million real estate loan based on allegedly inflated financials. The lawsuit claims that JPMorgan ignored red flags to secure fees while financing the Chetrit Group’s 2019 property purchase. Despite knowing the seller overstated income by 25%, JPMorgan proceeded and later sold the loan to investors. After the borrower defaulted in 2022, leaving $285 million unpaid, Wells Fargo demanded that JPMorgan buy back the loan or pay damages.
In the fourth quarter of 2024, Wells Fargo & Company (NYSE:WFC) saw a 7% drop in net interest income due to changes in deposit mix and lower rates, but noninterest income jumped 11% due to strong venture capital returns, higher asset-based fees, and investment banking growth. Expenses fell 12%, mainly due to lower FDIC assessments and cost efficiencies, though higher compensation and tech costs offset some savings. Credit loss provisions decreased overall, except for credit cards, and the bank gained $863 million in tax benefits from resolving past issues. Shareholders received $25 billion in returns, including $20 billion in buybacks, up 64% year-over-year, and a 15% dividend increase. The bank distributed a $0.40 per share quarterly dividend on March 1.
8. Bank of America Corporation (NYSE:BAC)
Number of Billionaire Investors: 18
Bank of America Corporation (NYSE:BAC) was founded in 1784 and is based in Charlotte, North Carolina. It caters to individuals, businesses, and governments worldwide, offering savings and checking accounts, loans, credit cards, and investment products. The company also provides wealth management, commercial lending, treasury solutions, advisory services, and securities trading. BAC is favored by 18 billionaire investors as of Q4 2024, making it one of the best financial stocks to invest in.
Bank of America Corporation (NYSE:BAC) is set to pay a quarterly dividend of $0.26 per common share on March 28, 2025, to shareholders on record as of March 7. Additionally, the bank will pay a $1.75 per share dividend for its 7% Cumulative Redeemable Preferred Stock, Series B on April 25, to shareholders listed by April 11.
On March 25, Bank of America Corporation (NYSE:BAC) reported that it plans to repay two sets of bonds in full on April 2, 2025, a year ahead of schedule. This includes $500 million in Floating Rate Notes and $3 billion in Fixed/Floating Rate Notes. Investors will receive the total principal amount, along with any interest accrued up to that date. After April 2, no further interest will be paid.
Bank of America Corporation (NYSE:BAC) posted a net income of $6.7 billion, or $0.82 per share, in Q4, and revenue climbed 15% to $25.3 billion, fueled by higher investment banking, asset management, and trading fees. Net interest income edged up 3%, supported by loan growth and asset repricing, though offset by lower interest rates. The bank set aside $1.5 billion for credit losses, up from $1.1 billion last year, while expenses dropped 5%, largely due to the absence of a one-time FDIC charge in 2023. Deposits increased 3% to $1.96 trillion, and loans rose by the same percentage to $1.08 trillion. Checking accounts also continued steady growth, adding 213,000 new accounts. Digital engagement remained high, with 3.9 billion logins and 61% of sales happening online. BAC’s shareholder returns totaled $5.5 billion through dividends and stock buybacks.
7. The Allstate Corporation (NYSE:ALL)
Number of Billionaire Investors: 19
The Allstate Corporation (NYSE:ALL) is an Illinois-based provider of auto, home, and commercial insurance across the United States and Canada, selling through agents, call centers, and online. It also offers roadside assistance, identity protection, and insurance for health, life, and disability. It is one of the best financial stocks to buy, given it holds the interest of 19 billionaire investors and 71 hedge funds in total as of Q4 2024.
On January 30, The Allstate Corporation (NYSE:ALL) disclosed that it is selling its Group Health business to Nationwide for $1.25 billion in cash, pending regulatory approval. In the first nine months of 2024, the business brought in $608 million in revenue and $69 million in profit. The sale is part of Allstate’s plan to focus on its core strengths, following a separate $2 billion deal to sell its Employer Voluntary Benefits division. The company is still deciding whether to keep or sell its Individual Health business. The sale will boost capital by $0.9 billion and result in a $450 million gain. The deal is expected to close in 2025.
The Allstate Corporation (NYSE:ALL) raised its quarterly dividend by 8.7% to $1.00 per share on February 26. The dividend is payable on April 1, 2025, to shareholders on record as of March 10. The company also approved a $1.5 billion share buyback program running through September 2026.
On February 5, The Allstate Corporation (NYSE:ALL) announced that its Q4 revenue rose 11% to $16.5 billion, and its net income grew 30% to $1.9 billion. Strong performance in auto, homeowners insurance, and protection services drove an adjusted net income of $4.9 billion for the year. Investment income rose 25% to $3.1 billion in 2024, while homeowners insurance earned $1.3 billion despite $3.7 billion in catastrophe losses. Allstate minimized wildfire losses through reinsurance and reduced market exposure. The company expanded Property-Liability, grew Protection Plans revenue to nearly $2 billion for the year, and increased policies by 60% since 2019. It sold two Health and Benefits businesses for $3.25 billion and expects auto insurance growth in 2025.
6. The Charles Schwab Corporation (NYSE:SCHW)
Number of Billionaire Investors: 19
The Charles Schwab Corporation (NYSE:SCHW), one of the best financial stocks, is a Texas-based financial firm specializing in wealth management, banking, and investment services. It offers trading, mutual funds, financial planning, and digital tools for individual investors and advisors.
On February 10, Jefferies remained bullish on The Charles Schwab Corporation (NYSE:SCHW) with a Buy rating and a $95 target. According to Jefferies, Schwab’s $1.5 billion share buyback from TD signals financial strength, with an expected 6.5% Tier 1 Leverage ratio. Trading activity remains strong, and with $7.2 billion left for repurchases, Schwab plans to keep buying back shares.
The Charles Schwab Corporation (NYSE:SCHW) reported a Q4 net income of $1.8 billion, or $2 billion, excluding transaction costs. Total client assets grew 19% year-over-year to $10.1 trillion, fueled by $114.8 billion in new assets during the fourth quarter, a 23% rise in brokerage accounts to 36.5 million, and record $55 billion net inflows into Managed Investing. Revenue climbed 20%, driven by an 11% increase in trading activity and a 14% boost in trading revenue, while net interest margin expanded to 2.33% and sweep cash balances rose by $34.6 billion.
On January 29, Charles Schwab announced an 8% increase in its quarterly dividend, raising it from $0.25 to $0.27 per share, along with a separate announcement for preferred share dividends. Shareholders received the payout on February 28.
5. Moody’s Corporation (NYSE:MCO)
Number of Billionaire Investors: 20
Moody’s Corporation (NYSE:MCO) is a global firm specializing in risk assessment. It operates through two main divisions: Moody’s Analytics, providing risk management tools like credit research, economic data, and SaaS solutions for banking and insurance, and Moody’s Investors Service, which is responsible for credit ratings for corporate, financial, and government debt. MCO is one of the best financial stocks, as it is backed by 20 billionaire investors.
On January 13, Moody’s Corporation (NYSE:MCO) disclosed the acquisition of CAPE Analytics, a company specializing in geospatial AI for property risk assessment. They aim to combine CAPE’s AI analytics with Moody’s risk modeling, giving insurers and financial firms deeper insights into property risks, valuations, and natural hazard exposure. The deal is expected to close in early 2025, pending regulatory approvals.
Moody’s Corporation (NYSE:MCO) closed out 2024 with revenue jumping 20% for the year. Moody’s Investors Services (MIS) transactional revenue surged 54%, outpacing issuance growth, while Moody’s Analytics (MA) saw a 9% increase in annual recurring revenue, driven by high demand for workflow solutions. In Q4, revenue rose 8% year-over-year, with standout growth in Decision Solutions, particularly in Banking, Insurance, and Know Your Customer. Operating cash flow for the year hit $2.84 billion, with free cash flow amounting to $2.5 billion, fueled by solid revenue growth across the board. Looking ahead to 2025, the company expects revenue to grow in the high-single digits and forecasts adjusted diluted EPS between $14 and $14.5.
Moody’s Corporation (NYSE:MCO) increased its quarterly dividend by 11% to $0.94 per share, which was distributed to shareholders on March 14, 2025. In the fourth quarter of 2024, the company repurchased 1 million shares at an average price of $477.15 and issued a small number of shares through employee stock programs. By the end of 2024, the company had 180.3 million shares outstanding and $1.6 billion remaining in its share repurchase program, with no expiration date.
4. CME Group Inc. (NASDAQ:CME)
Number of Billionaire Investors: 21
CME Group Inc. (NASDAQ:CME) operates global markets for trading futures and options across different asset classes, including equities, interest rates, foreign exchange, commodities, and metals. It also provides clearing services, risk management solutions, and market data offerings. CME ranks 4th on our list of the best financial stocks.
On March 25, CME Group Inc. (NASDAQ:CME) and Google Cloud shared that they are expanding their partnership by testing Google’s Universal Ledger to streamline wholesale payments and asset tokenization. This innovative, distributed ledger aims to simplify financial transactions and enhance efficiency in traditional markets. With initial testing completed, CME and Google Cloud plan to collaborate with market participants later this year, targeting a full launch in 2026.
CME Group Inc. (NASDAQ:CME) reported $1.5 billion in Q4 revenue and $6.1 billion for the full year. Net income for the quarter was $875 million, while full-year net income reached $3.5 billion. This was driven by record growth in trading volume across asset classes, particularly in interest rates, agriculture, foreign exchange, and metals. As of December 31, 2024, the company held $3.1 billion in cash and $3.4 billion in debt. In 2024, the company had $3.1 billion in cash and $3.4 billion in debt. In 2024, it returned $3.8 billion to shareholders through dividends, including a $2.1 billion variable dividend.
On February 6, CME Group Inc. (NASDAQ:CME) raised its quarterly dividend by 8.7% to $1.25 per share. The dividend was distributed on March 26, to shareholders on record as of March 7.
3. Capital One Financial Corporation (NYSE:COF)
Number of Billionaire Investors: 22
Capital One Financial Corporation (NYSE:COF) is a financial services company that operates in the United States, Canada, and the United Kingdom, offering a range of banking and lending products. It has three main segments – Credit Card, Consumer Banking, and Commercial Banking. BTIG analysts see huge potential for COF, predicting it could jump over 137% to $427 per share if the Discover merger goes through. They upgraded the stock to Buy from Hold, believing Capital One could use Discover’s payment network to take on Visa and Mastercard. Even if the deal doesn’t happen, the analysts still see upside, expecting Capital One Financial Corporation (NYSE:COF) to use its excess capital for $25 billion in stock buybacks. Bullish analyst sentiment, paired with the favor of 22 billionaire investors, makes COF one of the best financial stocks.
Capital One reported $1.1 billion in Q4 earnings, or $2.67 per share, and $4.8 billion for the year, which comes in at $11.59 per share. Adjusted earnings were $3.09 per share for Q4 and $13.96 for the year, factoring in Discover integration and legal costs. Credit loss provisions increased to $2.6 billion, while reserves dropped to $16.3 billion. Liquidity reserves also fell to $124 billion due to seasonal spending. Credit card performance remained strong, with purchase volume up 7% and revenue increasing 9% year-over-year. Capital One Financial Corporation (NYSE:COF)’s net income was impacted by loan growth, dividend payouts, and $150 million in share buybacks. The company has consistently paid quarterly dividends since 1995.
On March 18, Keefe, Bruyette & Woods maintained an Outperform rating and $232 target on Capital One Financial Corporation (NYSE:COF), dismissing antitrust concerns over its Discover deal as overblown. The firm noted the DOJ’s role is advisory, with final approval resting with the Fed and OCC, and remains bullish on the deal’s approval.
2. Mastercard Incorporated (NYSE:MA)
Number of Billionaire Investors: 22
American multinational payment technology giant, Mastercard Incorporated (NYSE:MA), is part of 22 billionaire portfolios, placing it 2nd on our list of the best financial stocks. On January 31, Citi analyst Ashwin Shirvaikar raised MasterCard’s price target to $650 from $584 while keeping a Buy rating on the shares. After strong Q1 results, the stock jumped 3%, beating the broader market. Shirvaikar believes the company is well-positioned for future growth, despite some short-term challenges. While earnings per share may grow at a slower pace this year, he sees the company as a steady long-term winner in digital payments.
On March 17, Mastercard Incorporated (NYSE:MA) disclosed a partnership with ICBA Payments to enhance card services for 1,400 community banks, introducing contactless payments, digital wallets, and 8-digit BINs. As part of the deal, the company will manage communications and provide joint marketing support while ICBA Payments transitions its programs at no cost.
In Q4 2024, Mastercard Incorporated (NYSE:MA) reported a net income of $3.3 billion and earnings per share of $3.64. Revenue climbed 14% year-over-year to $7.5 billion, while gross dollar volume grew by 12% and purchase volume by 13%. By the end of 2024, there were 3.5 billion Mastercard and Maestro-branded cards in circulation. In Q4, the company bought back 6.5 million shares for $3.4 billion and paid $606 million in dividends.
On February 10, Mastercard Incorporated (NYSE:MA) declared a $0.76 per share quarterly dividend, in line with previous. The dividend is payable on May 9, to shareholders listed by April 9. The company has consistently shelled out dividends since 2007.
1. Visa Inc. (NYSE:V)
Number of Billionaire Investors: 26
26 billionaire investors hold ownership positions in Visa Inc. (NYSE:V), making it one of the best financial stocks to buy. Visa is actively fighting against scams with a new fraud disruption team under its Payment Ecosystem Risk and Control division. In 2024, this initiative saved victims $350 million and blocked $40 billion in fraud attempts. The Visa Scam Disruption Team uses AI, big data, and experts, including former law enforcement and military professionals, to track down and shut down scammers. The company is also working closely with banks and law enforcement to stay ahead of evolving scams.
Solid holiday spending and growth in payments and cross-border transactions resulted in strong Q1 2025 financial results for Visa Inc. (NYSE:V). The company reported $9.5 billion in revenue for the first quarter, a 10% increase from last year. Net income came in at $5.1 billion, up 5%, while adjusted earnings rose 11% to $5.5 billion. Payment volume grew 9%, cross-border transactions jumped 16%, and Visa processed 63.8 billion transactions, reflecting an 11% increase. Service revenue hit $4.2 billion, and international transaction revenue climbed 14% to $3.4 billion. Visa closed the quarter with $16.1 billion in cash and investments.
In the last quarter of 2024, Visa Inc. (NYSE:V) bought back 13 million shares at an average price of $300.61, spending $3.9 billion, with $9.1 billion still left for future repurchases. On January 28, 2025, the board announced a quarterly dividend of $0.59 per share, which was paid on March 3 to shareholders on record as of February 11. Visa has consecutively raised its dividends for 17 years in a row.
Overall, Visa Inc. (NYSE:V) ranks first on our list of the best financial stocks to buy according to billionaires. While we acknowledge the potential of V to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than V but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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