Giverny Capital Asset Management, LLC, a renowned investment management company, recently released its fourth-quarter 2025 investor letter. The firm’s portfolio saw a modest return of 0.01% during the quarter, compared to the S&P 500’s 2.66% gain. Year-to-date, the fund returned 12.58%, trailing the Index’s 17.88% return. Despite facing challenges in the fourth quarter and calendar year, the firm reported solid appreciation. The portfolio’s underweight position in large tech companies and overweight in smaller niche leaders impacted performance negatively, as the market fixated on AI investments, leaving the actual benefits unclear.
One of the leading contributors to Giverny Capital Asset Management’s portfolio in the fourth quarter was The Charles Schwab Corporation (NYSE:SCHW), a prominent brokerage and financial services company. The stock closed at $103.92 per share on January 30, 2026, with a market capitalization of $188.638 billion. The Charles Schwab Corporation (NYSE:SCHW) delivered a 0.17% return in the past month and has seen a 25.58% increase in share price over the past twelve months.
In its investor letter, Giverny Capital Asset Management praised The Charles Schwab Corporation (NYSE:SCHW) for its exceptional position in American households. The company reported a more than 50% growth in earnings in 2025 and is projected to achieve another 20%+ growth in 2026. With over 38 million active brokerage accounts and $11.9 trillion in client assets at year-end, Schwab continues to attract new clients rapidly while maintaining the lowest expense structure in its industry.
Despite its strong performance, The Charles Schwab Corporation (NYSE:SCHW) is not among the 30 most popular stocks among hedge funds. While 99 hedge fund portfolios held the stock at the end of the third quarter, down from 100 in the previous quarter, Giverny Capital Asset Management believes that certain AI stocks offer greater upside potential with lower downside risks. For investors seeking an undervalued AI stock that could benefit from Trump-era tariffs and the onshoring trend, the firm recommends exploring their free report on the best short-term AI stock.
In conclusion, Giverny Capital Asset Management’s fourth-quarter 2025 investor letter highlighted the firm’s performance, key holdings, and outlook on The Charles Schwab Corporation (NYSE:SCHW). With a focus on niche leaders and emerging trends, the firm continues to navigate the market landscape to deliver value for its investors.
