No. of Recommendations: 2
"" Morgan Stanley might appeal to Buffett because the firm’s main driver is wealth management, making its earnings less volatile than those at rival Goldman Sachs, and less vulnerable to the economy than those of banks. Morgan Stanley trades for around 11 times projected 2024 earnings per share, a premium to the group, and yields more than 4%.
Shares of BlackRock, the No. 1 global investment manager by assets, are about flat this year and now trade for around 19 times forward earnings, yielding nearly 3%. BlackRock is well managed under CEO Larry Fink with a leading position in exchange-traded funds and bonds. It ranks well in the industry in terms of its ability to attract net inflows of investment money.
Chubb is one of the largest and best-run property and casualty insurers. Buffett undoubtedly knows it well given Berkshire’s 50-plus year involvement in the industry.
Other top-25 financials look like unlikely targets for Buffett. Berkshire already owns Visa (V), Mastercard (MA), Bank of America (BAC), American Express (AXP), Citigroup (C), and Moody’s (MCO). Buffett sold JPMorgan, Goldman, and Wells Fargo in recent years and may not want to buy them back at a higher price.""
