We are buying 50 shares of Capital One Financial at roughly $185. Following the trade, Jim Cramer’s Charitable Trust will own 550 shares of COF, increasing its weighting to 3% from 2.75%. We’re doing a little bit of buying Friday as stocks sell off in reaction to President Donald Trump’s tariff threats against the European Union and Apple . This purchase violates the low average cost basis on our Capital One position, but we always wanted to make this position bigger due to our conviction in the benefits of the Discover acquisition, which closed on Sunday. After touching $200 per share last week, shares of Capital One have pulled back more than 6% over the past couple of days, giving us that opportunity. On our monthly call on Wednesday , Cramer called Capital One Financial one of the most exciting positions in the portfolio. The main reason is because of the Discover acquisition, which brings with it significant strategic and financial benefits , including an estimated $2.7 billion worth of expense and network synergies. Capital One also has a lot of excess capital on its balance sheet, providing ample room for share purchases in the second half of this year. A note on Friday from analysts at Truist estimate the bank will end this quarter with $15 to $20 billion of excess capital. Truist said the consensus expects $2 billion of buybacks in the second half of 2025, increasing to $4 billion in 2026. (Jim Cramer’s Charitable Trust is long COF. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
