10 Best Stocks For Beginners With Little Money

5. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders In Q2 2024: 111

JPMorgan Chase & Co. (NYSE:JPM) is the world’s biggest private bank in terms of total assets. As opposed to regional US banks, it benefits not only from a global consumer and corporate banking presence but also from a presence in the lucrative investment and capital markets. This allows JPMorgan Chase & Co. (NYSE:JPM) to diversify its business and ensure that it stays on top in varying economic climates. For instance, between 2021 and 2023, when interest rates soared, JPMorgan Chase & Co. (NYSE:JPM)’s revenue has grown its revenue from an already sizeable $122 billion to $155 billion or by 27%. This shows strong management execution as mega firms are unable to post mid double digit percentage revenue growth. From 2021 end to 2023 close, JPMorgan Chase & Co. (NYSE:JPM)’s stock has 7.4% while the shares are up by 23% year to date. The latter gain reflects investor hopes for an interest rate reduction cycle that can stimulate capital markets and provide sizeable catalysts for JPMorgan Chase & Co. (NYSE:JPM). However, if markets perceive that a recession is on the horizon, then the stock could suffer as investors price in the potential for higher loan losses.

Vitava Fund mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2023 investor letter. Here is what the fund said:

“Last spring, the US went through a brief banking crisis that cost several smaller and medium-sized banks their lives. One of them, First Republic Bank, with assets of $230 billion, went into receivership and was bought out by the largest US bank, JP Morgan. The acquisition terms were very favourable for JPM and the facts that few, if any, other banks could have taken over the whole of First Republic Bank in its then-present state while guaranteeing more than $100 billion of its deposits played a role. JPM could do it. It is not only the largest, but also by its balance sheet the strongest US bank and, in our opinion, clearly the best managed. It has come out of this crisis even stronger. We have actively followed the banking sector for 20 years in many countries around the world. Our view is that a well-managed bank can be a very good long-term investment but that it is better to focus on the best and highest quality available. Banking is not a sector where it pays to trade quality for cheaper valuations. That is why we hold JPM.”