Is it Still Safe to Own Charles Schwab (SCHW) Shares?

Giverny Capital, an asset management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. For the first quarter of 2022, Giverny Capital Asset Management’s model portfolio declined by 8.21%, net of fees, vs. a decline of 4.60% for the Standard & Poor’s 500 Index. For the trailing twelve-month period, the GCAM model generated a return of 9.63% vs. 15.65% for the Index, also net of fees. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Giverny Capital Asset Management mentioned The Charles Schwab Corporation (NYSE:SCHW) and explained its insights for the company. Founded in 1971, The Charles Schwab Corporation (NYSE:SCHW)  is a Westlake, Texas-based financial services company with a $131 billion market capitalization. The Charles Schwab Corporation (NYSE:SCHW)  delivered a -17.81% return since the beginning of the year, while its 12-month returns are down by -1.82%. The stock closed at $69.12 per share on April 28, 2022.

Here is what Giverny Capital Asset Management has to say about The Charles Schwab Corporation (NYSE:SCHW) in its Q1 2022 investor letter:

“My wife likes to kid me for my tendency to praise essays and other commentary by saying, “It was good because I agreed with it.” I cite Jamie Dimon at the top of this letter because I agree with his comments and, in fact, have been writing to you for some time about the problem of unsustainably low interest rates coupled with high levels of inflation. As you know, we own a significant number of companies that should benefit from higher interest rates, including brokerage Charles Schwab. Turning to trading, during the first quarter we lightly trimmed our holding Charles Schwab. We trimmed Schwab after a big run-up. It remains one of our top five holdings.”

Our calculations show that The Charles Schwab Corporation (NYSE:SCHW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Charles Schwab Corporation (NYSE:SCHW) was in 72 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 59 funds in the previous quarter. The Charles Schwab Corporation (NYSE:SCHW) delivered a -22.26% return in the past 3 months.

Just last month, we also shared another hedge fund’s views on The Charles Schwab Corporation (NYSE:SCHW) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.