2. The banking leader
Investors may also want to take a look at one of Buffett's newest positions. In a recently released financial filing, Berkshire Hathaway disclosed that it purchased more than 35 million shares of JPMorgan Chase (NYSE:JPM), currently valued at nearly $4 billion.
Like Apple, JPMorgan Chase is a titan in its industry. In fact, it's the largest bank in the U.S., with $2.6 trillion in assets.
JPMorgan Chase is a broadly diversified financial institution, with operations that span across retail and commercial banking, credit card services, investment banking, and asset management, among others. This diversification lessens its risk profile for investors, as strength in one area of its business can offset weakness in another.
JPMorgan Chase also has a respected management team, led by CEO Jamie Dimon. Buffett is a big fan of Dimon, so much so that he also owns JPMorgan Chase stock in his personal portfolio.
Moreover, like Apple, JPMorgan Chase's shares have pulled back in recent weeks. Investors appear to be concerned that rising interest rates could slow economic growth. But banks tend to make more money in rising rate environments as they see an expansion in their net interest margins essentially, the spread between what a bank earns on its loans and what it pays out to depositors. So even if the economy slows somewhat, higher interest rates could make JPMorgan Chase's banking operations more profitable in the years ahead.
Better still, with its price now down about 10% from its highs, JPMorgan Chase's stock currently trades for less than 11 times forward earnings estimates. That's an attractive price for a best-in-class global financial institution that's projected to grow its profits by nearly 10% annually over the next five years. Thus, long-term investors may want to consider buying this banking titan's stock today.