Banking on Experience: 3 Financial Stock Picks from Wall Street's Longest-Serving Guru

Core Insights - David Ellison, a seasoned fund manager with 41 years in the investment industry, manages the Hennessy Large Cap Financial Fund, which includes notable holdings like Coinbase [1][2] - The article highlights three financial stocks recommended by Ellison, showcasing his investment strategy and insights into the financial sector [2] Group 1: Morgan Stanley - Morgan Stanley is Ellison's 12th-largest holding, representing 4.81% of the fund [3] - Under former CEO James Gorman, Morgan Stanley's shares increased by 215%, which is lower than the S&P 500's 323% but higher than the Dow Jones U.S. Banks Index's 133% [3] - Revenue growth from $16.4 billion in 2010 to $54.14 billion in 2023, with nearly 50% of revenue coming from wealth management [3][4] Group 2: Berkshire Hathaway - Berkshire Hathaway is Ellison's 15th-largest holding, accounting for 4.29% of the fund [6] - The company reduced its Apple holdings by 13%, selling 117 million shares, while maintaining a cash position exceeding $188 billion [6] - Berkshire generates over $8 billion annually from its cash position, making it a significant asset [6] Group 3: Truist Financial - Truist Financial is Ellison's 21st-largest holding, with a 1.99% weighting, and its stock has risen nearly 41% over the past year [7] - The company sold its remaining stake in Truist Insurance Holdings, enhancing its financial profile and allowing for investment in core banking businesses [7][8] - Moody's downgraded Truist's long-term senior unsecured debt to Baa1 from A3, indicating concerns about revenue diversification following the sale [8]