Giverny Capital Asset Management, LLCan investment management firm, recently published its Q4 2025 Investor Letter. A copy of the same can be downloaded here. The portfolio returned 0.01% versus 2.66% for the S&P 500. Last year, the fund returned 12.58% versus 17.88% for the index. The company faced a difficult fourth quarter and calendar year, despite solid appreciation. The outperformance of some large technology companies has detracted from performance, given the portfolio’s underweight in large tech and overweight in smaller niche leaders. While portfolio companies stand out in terms of earnings growth and returns on capital, the market is focused on AI investments, and the real benefits are unclear. Additionally, you can review the Portfolio’s top 5 holdings to see their top picks for 2025.

In its Q4 2025 letter to investors, Giverny Capital Asset Management highlighted The Charles Schwab Corporation (NYSE:SW) as one of his main collaborators. The Charles Schwab Corporation (NYSE: SCHW) is a leading brokerage and financial services company. Shares of Charles Schwab Corporation (NYSE:SCHW) closed at $103.92 per share on January 30, 2026, with a market capitalization of $188.638 billion. One month performance of The Charles Schwab Corporation (NYSE:SCHW) offered a return of 0.17% for the past month, and its stock has surged 25.58% over the past twelve months.

Giverny Capital Asset Management stated the following about The Charles Schwab Corporation (NYSE:SCHW) in its 2025Q4 investor letter:

“The Charles Schwab Corporation (NYSE: SCHW) has an exceptional position with fluid American households. It grew earnings by more than 50% in 2025 and could grow by another 20% in 2026. Schwab recently added 1 million new brokerage accounts per quarter and now has more than 38 million active brokerage accounts. By 2025, it contributed $519 billion in net new client assets. That, along with strong markets, boosted Schwab’s total client assets to $11.9 trillion at the end of the year. Schwab is attracting new clients at a remarkable rate while maintaining the lowest expense structure in its industry.”

Charles Schwab Corporation (NYSE:SCHW) is not on our list The 30 most popular stocks among hedge funds. According to our database, 99 hedge fund portfolios held The Charles Schwab Corporation (NYSE:SCHW) at the end of the third quarter, down from 100 the previous quarter. While we recognize the potential of The Charles Schwab Corporation (NYSE:SCHW) as an investment, we believe certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.