In a strategic move to increase investment positions, Jim Cramer’s Charitable Trust has made notable adjustments to its portfolio by acquiring additional shares of Capital One and Wells Fargo. The trust is purchasing 30 shares of Capital One at approximately $192, which raises its weighting in the portfolio to 3% from 2.85%. This acquisition brings the total number of Capital One shares held to 610. This move comes on the heels of a market downturn affecting the stock after a report from Citrini Research highlighted potential challenges for American Express related to the rise of AI and agentic commerce, which could disrupt traditional transaction fee models.
Following the market’s reaction, which also impacted Capital One, the trust had already bought half of the planned shares last Wednesday at $208 each. The report emphasized concerns over a softening labor market and new technologies potentially undermining the revenues of credit card companies. However, analysts at Wells Fargo responded robustly, reiterating their belief that stablecoins pose minimal threat to American Express’s revenue, barring any significant regulatory changes that would disrupt U.S. banking practices.
Capital One’s stock now trades on low multiples, less than 10 times the consensus earnings estimates for 2026, and under 8 times for 2027, making it an attractive buy as the company has a substantial share repurchase program underway. The trust is also increasing its stake in Wells Fargo, purchasing 25 shares at around $84, which adjusts the weighting to 3.47% from 3.41%. This move signifies a buy-back of shares sold at higher prices of $86 and $94 in previous months, amidst a broader pullback in the financial sector driven by concerns over AI.
While big banks have encountered headwinds due to technology-related sell-offs, Cramer remains optimistic about the long-term benefits of AI in enhancing productivity and overall financial performance. To further streamline its holdings, the trust is downgrading its position in Palo Alto Networks, shifting its rating down to a 3, which corresponds to a recommendation to sell into strength. This decision is not a reflection of its view on the significance of AI in cybersecurity; rather, it stems from a portfolio management strategy to concentrate on a single cybersecurity investment instead of holding multiple.
Subscribers to the CNBC Investing Club with Jim Cramer are informed of trades ahead of execution, ensuring transparency and allowing for timely adjustments in portfolio management. The upcoming adjustments in the portfolio reflect ongoing evaluations of the financial landscape and strategic rebalancing in light of current market conditions.
