Warren Buffett’s 10 New Stock Picks

8. Capital One Financial Corp. (NYSE:COF)

Shares held by Berkshire Hathaway: 9.10 million

Stake Acquired: Q1 2023

Many of us remember the first quarter of 2023 as a rather tumultuous period for the US banking sector, as Silicon Valley Bank and Signature Bank collapsed, which sent shockwaves through the entire sector. However, Buffett likely saw this an opportunity to get a solid  bank stock at a discount and acquired a stake in Capital One Financial Corp. (NYSE:COF).

Capital One Financial Corp. (NYSE:COF)’s shares appreciated by more than 42% in the past year as the company has delivered solid results. One big catalyst for this growth has been the pending acquisition of Discover Financial Services. The $35 billion all-stock deal is expected to close in 2025 and is expected to substantially expand Capital One’s customer base with the addition of several dozen million new customers. Moreover, having access to Discover’s payment network will allow Capital One Financial Corp. (NYSE:COF) to potentially compete with the likes of Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA). Nevertheless, the completion is still subject to shareholder and regulatory approvals.