Investing tycoon and the Oracle of Omaha himself, Warren Buffett, is retiring as CEO of Berkshire Hathaway at the end of 2025, but he will remain as the company’s chairman. His legacy for making money is unmatched and he currently has an estimated net worth of $159.8 million.
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One of Buffett’s key investments? They’re bank stocks, as Buffett has holdings in six bank stocks in the Berkshire Hathaway portfolio. “If you follow sound banking methods, which means not doing some things that other people do, a bank could be a perfectly decent investment,” said Buffett.
Buffett continues to be a big believer in bank stocks, and though he has several varying from big banks to regional financial institutions, there are a few contenders for top holdings in his portfolio. Here are Buffett’s top three bank stock picks.
At the end of 2024, Buffett owned more than 1 billion shares of BAC stock, but in 2025, Buffett oversaw the sale of over 300 million shares of that same stock, which reduced his company’s position by 34%. The current state is now valued at approximately $29 billion. This is Buffett’s largest bank holding and one that he has held on to for a long time despite market swings.
Currently, Buffett owns 151.6 million shares of AXP, a stake that’s valued at approximately $32 billion. Buffett is a long-term believer in America’s 16th-largest bank, having first invested in AXP stock back in the 1970s, so this investment is a long-standing one, with Berkshire having held AmEx shares for decades.
Last year, Buffett owned 55 million shares of C, a stake that was valued at approximately $3 billion. However, in 2025 Berkshire Hathaway owns just under 15 million shares as it sold off a large portion of its holdings in Citigroup relatively recently. Although C is a smaller holding in his stock portfolio, it’s one of the few stocks that Buffett has had a change of heart about and decided to reinvest in.
Here are a few points to consider before investing your money in bank stocks like Buffett:
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Evaluate Your Risk Tolerance: Investing in stocks always comes with risk. While bank stocks tend to be more reliable long-term investments, market conditions can certainly affect your investment’s value. Evaluating your level of risk before entering the stock market is crucial.
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Decide How Much Liquid Cash You Should Hold: Historically, investing your money in the stock market can lead to significantly more gains in the long term when compared with earning interest in a high-yield savings account. However, you’ll want to be sure to keep at least 3-6 months’ worth of liquid cash (if not more) before allocating additional funds to purchasing stocks.
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Decide If You’re Looking for Short-Term or Long-Term Gains: Investing in stocks and selling them shortly thereafter if the price rises quickly can sometimes yield you large gains. However, this strategy comes with greater risk and typically a greater tax liability. If you’re looking for consistent, long-term gains, then investing in bank stocks is a safer choice.
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Be Sure To Diversify Your Investments: Investing only a portion of your money in bank stocks rather than all of it is a smart way to protect yourself from market fluctuations. Consider building a diversified investment portfolio that consists of higher-risk stocks, lower-risk stocks, and conservative investments such as mutual funds, bonds and ETFs.
