Top 10 Financial Companies To Buy Right Now

We're still only a couple hours into the�Berkshire Hathaway� (NYSE: BRK-A  ) (NYSE: BRK-B  ) annual meeting, but there's a significant theme already surfacing in Warren Buffett's comments. In a word: size.

And yes, to quell your curiosity, Buffett did, in fact, say that size does matter.

Jokes aside, Doug Kass, the big, bad Berkshire bear, challenged Buffett and Charlie Munger on whether Berkshire's size would impede future returns. The easy answer is, of course -- and it's been answered many times over the years -- yes. There are certain opportunities that start to disappear as Berkshire gets ever larger.

However, through the first couple hours of the meeting, both Buffett and Munger returned to the theme that Berkshire's size and financial give the company huge competitive advantage. How many companies out there have billions in liquid cash available to jump on opportunities at a moment's notice? How many have managers of the right mettle to put that capital to work when the market is in disarray?�

Top 10 Financial Companies To Buy Right Now: Risan Napoli(RN.MI)

Risanamento S.p.A. engages in the development and investment of real estate properties in Italy and internationally. Its property portfolio comprises approximately 2,500,000 square meters. The company is based in Milan, Italy.

Top 10 Financial Companies To Buy Right Now: Annaly Capital Management Inc (NLY)

Annaly Capital Management, Inc. (Annaly), incorporated on November 25, 1996, owns, manage, and finance a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), Agency callable debentures, and other securities representing interests in or obligations backed by pools of mortgage loans. The Company's wholly owned subsidiaries offer diversified real estate, asset management and other financial services. The Company's subsidiary, RCap Securities, Inc. (RCap), operates as a broker-dealer. In August 2012, the Company liquidated FIDAC FSI LLC. In December 2012, the Company sold FIDAC Europe Limited.

The Company�� subsidiary Fixed Income Discount Advisory Company (FIDAC) is an investment advisor registered with the Securities & Exchange Commission (SEC), is a fixed-income investment management company specializing in managing fixed income investments in residential mortgage-backed securities, commercial mortgage-backed securities and collateralized debt obligations for various investment vehicles and separate accounts. FIDAC is engaged in managing and structuring debt financing associated with various asset classes and as a liquidation agent of collateralized debt obligations. As of December 31, 2012, FIDAC was the adviser or sub-adviser for real estate investment trust (REITs )and other investment vehicles. Merganser Capital Management, Inc. (Merganser) is an investment advisor, registered with the SEC, engaged in a range of fixed income strategies and focuses on managing each portfolio based on each client�� specific investment principles. Merganser serves a group of clients in a range of disciplines globally, including pension, public, operating, Taft-Hartley and endowment funds, as well contribution plans. RCap Securities, Inc. (RCap) operates as a broker-dealer and is a member in the Financial Industry Regulatory Authority (FINRA).

Through the Company�� subsidiary Shannon Funding LLC (Shannon),! it provides warehouse financing to residential mortgage originators in the United States. It also owns an additional subsidiary, which owns trading securities. Under the Company�� investment policy, at least 75% of its total assets consisted of mortgage-backed securities and short-term investments. The remainder of its assets, consisting not more than 25% of its total assets, may consist of other qualified REIT real estate assets. As of December 31, 2012, all of the mortgage-backed securities, which it has acquired, have been backed by single-family residential mortgage loans. The Company also invests in Agency debentures, which consist of debentures issued by the Federal Home Loan Bank (FHLB), Freddie Mac and Fannie Mae.

Advisors' Opinion:

• [By David Hanson and Matt Koppenheffer]

  With continued concerns over firms' ability to weather a potential spike in interest rates, mREITs like Annaly Capital Management (NYSE: NLY  ) and American Capital Agency (NASDAQ: AGNC  ) were lagging the market and have now lost 10% and 20%, respectively, over the past month.

• [By John Maxfield]

  I've been meaning to write about this for some time, but have put it off because, frankly, I feel slightly sullied every time I write about Annaly Capital Management (NYSE: NLY  ) . Of all the companies that I follow, I believe it to be the least honest and forthcoming with shareholders. And lest there be any doubt about this, its decision to "externalize" its management team, taken at last month's annual shareholder meeting, confirms this opinion.

• [By David Hanson]

  The primary reason for the sell-off of�Annaly Capital (NYSE: NLY  ) ,�American Capital Agency (NASDAQ: AGNC  ) , and Armour Residential (NYSE: ARR  ) , just three of the funds that mainly invest in MBSes backed by Fannie Mae and Freddie Mac, is the fear that the inevitable rise in interests rates will damage firms' book values and further squeeze net interest margins, thus shrinking net income and dividend payouts.

Top 10 High Tech Stocks To Watch Right Now: Aon Corporation(AON)

Aon Corporation provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services primarily in the United States, the Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia Pacific. The company?s Risk Solutions segment offers retail brokerage products and services, including affinity products, general underwriting management services, placement services, and captive management services; and advisory services to technology, financial services, agribusiness, aviation, construction, health care, and energy industries, as well as facilitates various risk management solutions for property liability, general liability, professional liability, directors' and officers' liability, workers' compensation, and various healthcare products. This segment also provides risk consulting services comprising captive management; eSolutions products that enable clients to manage risks, policies, claims, and safet y concerns through an integrated technology platform; reinsurance brokerage services, such as actuarial, enterprise risk management, catastrophe management, and rating agency advisory services; property and casualty reinsurance; and specialty lines, which include professional liability, medical malpractice, accident, life, and health, as well as capital management transaction and advisory services. Its HR Solutions segment offers human capital services in the areas of health and benefits, retirement, compensation, and strategic human capital; and benefits administration and human resource business process outsourcing services. The company was founded in 1919 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Sean Williams]

  It's been a banner year for private-platform health insurers, as some very large enterprises including�Walgreen, IBM, Time Warner,�and Home Depot�have shifted at least some of their employee base to a privatized exchange. The two names here that should benefit are Aon (NYSE: AON  ) , which runs the Aon Hewitt Corporate Health Exchange and had landed 18 clients with 5,000 or more employees as of last month, and Xerox (NYSE: XRX  ) , whose subsidiary Buck Consultants built RightOpt, an employer-based privatized exchange aimed primarily at retirees who are getting the boot from their corporate health benefits plan.

• [By Reuters]

  Wendy Maeda/The Boston Globe via Getty Images NEW YORK -- Walgreen is moving 120,000 employees to a private health insurance exchange from coverage provided directly from carriers, the company will announce Wednesday. The pharmacy chain will join 17 other large employers on the Aon Hewitt Corporate Health Exchange as part of a growing movement to offer employees fixed dollar amounts to purchase their own plans on such exchanges. The end-cost to employees depends on the plan chosen, but they typically get more options than under traditional arrangements. Private exchanges mimic the coverage mandated as part of the Affordable Care Act. Enrollment in the public exchanges starts Oct. 1. "What happens to employer contributions over time? Will they put in as much as they put in the past? These are unanswered questions but potential negatives," says Paul Fronstin, a senior research associate with the Employee Benefit Research Institute. The benefit to Walgreen and other employers is unknown at this point, as their cost-savings aren't clear. Of the 180,000 Walgreen (WAG) employees eligible for health care insurance, 120,000 opted for coverage for themselves and 40,000 family members. Another 60,000 employees, many of them working part-time, weren't eligible for health insurance. Aon Hewitt (AON) says other participants in its program include retailer Sears Holding (SHLD) and Darden Restaurants (DRI). These new additions raise enrollment to 330,000 from 100,000 last year, and Aon Hewitt estimates enrollment will jump to 600,000 next year, a fivefold increase from 2012. By 2017, nearly 20 percent of employees nationwide could get their health insurance through a private exchange, according to Accenture Research (ACN). A recent report by the National Business Group on Health said that 30 percent of large employers are considering moving active employees to exchanges by 2015. Other major providers of private exchanges include Mercer, a division of Marsh & Mc

Top 10 Financial Companies To Buy Right Now: Pimco High Income Fund(PHK)

PIMCO High Income Fund is a closed ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Pacific Investment Management Company LLC. It invests in the public fixed income markets across the globe. The fund invests in U.S. dollar denominated high-yield corporate debt obligations. It employs fundamental analysis along with a top down stock picking approach to make its investments. PIMCO High Income Fund was formed on April 30, 2003 and is domiciled in the United States.

Advisors' Opinion:

• [By Dan Caplinger]

  Lesson 1: Income is king.
  A look at the four funds trading at the highest premiums to net asset value reveals a common thread: They're all focused on maximizing income. What's interesting, though, is that they use different methods to reach the same ends. Among the three PIMCO funds, PIMCO High Income (NYSE: PHK  ) looks largely to the high-yield bond market for its holdings, while PIMCO Corporate & Income Opportunities (NYSE: PTY  ) has a somewhat lower distribution rate but has a sizable allocation to investment-grade debt. The fund with the highest premium, PIMCO Global StocksPLUS, uses futures contracts to add stock exposure to its portfolio of income-producing bonds. Finally, BlackRock Virginia Municipal Bond rounds out the top four with its tax-free bond portfolio.

• [By Dan Caplinger]

  But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

  Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

  When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top 10 Financial Companies To Buy Right Now: Cls Holdings(CLI.L)

CLS Holdings plc engages in the investment, development, and management of commercial properties, primarily office buildings. It leases its properties for office, industrial, residential, community centre, car parking, leisure, studios/workshops, nursing home, and education/hospital uses to various sectors, including government, business services, manufacturing, information technology, and finance. As of December 31, 2010, the company had a portfolio of 28 properties with an aggregate lettable area of 127,700 square meters in London, the United Kingdom; 26 properties covering an area of 96,500 square meters in France; 16 properties with 138,000 square meters of lettable space in Germany; and approximately an area of 45,500 square meters in Sweden. CLS Holdings plc was founded in 1987 and is based in London, the United Kingdom.

Top 10 Financial Companies To Buy Right Now: PrivateBancorp Inc.(PVTB)

PrivateBancorp, Inc. operates as the holding company for The PrivateBank and Trust Company that provides business and personal financial services to middle-market companies and business owners, executives, entrepreneurs, and families in the United States. The company?s deposit products include checking, savings, and money market accounts; interest and non-interest bearing demand deposits; and certificates of deposit. Its loan portfolio comprises commercial loans, including lines of credit to businesses for working capital needs, term loans, and letters of credit; commercial real estate loans; loans for the construction of single-family residential properties, multi-family properties, and commercial projects; mortgage loans; and residential, home equity, and personal loans. The company also provides private banking, investment management, trust, and investment agency services to high and ultra-high net-worth clients; custody, escrow, and tax-deferred exchange services; and investment management services to individuals, families, and foundations. In addition, it invests primarily in residential mortgage-backed securities and collateralized mortgage obligations. As of December 31, 2011, the company operated 18 branch locations in the Chicago market; and 10 branch locations in the Atlanta, Detroit, Kansas City, Milwaukee, and St. Louis metropolitan areas, as well as 29 automated teller machines located at its banking facilities. PrivateBancorp, Inc. was founded in 1989 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Holly LaFon]

  In the last several weeks, three hedge and mutual fund managers sold shares of their holdings where they own 5% or more of the company, according to GuruFocus Real Time Picks. Most of the managers made large gains on these sales, with one exception. John Paulson reduced his stake in Delphi (DLPH), Third Avenue reduced its stake in Skyline Corp. (SKY), and NWQ Managers reduced its stake in PrivateBancorp (PVTB) and Bob Evans Farms (BOBE). John Paulson and Delphi Auto Plc (DLPH)

• [By Laura Brodbeck]

  Next week investors will be waiting for several key earnings reports including�General Electric Company (NYSE: GE), Intuitive Surgical, Inc. (NASDAQ: ISRG), Peabody Energy Corporation (NYSE: BTU), Nokia Corporation (NYSE: NOK), PrivateBancorp, Inc. (NASDAQ: PVTB),Yahoo! Inc. (NASDAQ: YHOO), Bank of America Corp (NYSE: BAC) and Verizon Communications Inc. (NYSE: VZ).

Top 10 Financial Companies To Buy Right Now: Bca Profilo(PRO.MI)

Banca Profilo S.p.A. provides private banking, investment banking, and capital market services to institutional clients in Italy. Its investment banking activities include company valuation and preparation of business plans; merger and acquisition advice and assistance in mergers, acquisitions, divestitures, and joint ventures; finding venture capital through the inclusion of industrial or financial partners; organization and raising capital for LBO/MBO; organizing, structuring, and underwriting of IPOs and capital increases of listed companies; and corporate and financial restructuring. It also provides various private banking services, such as asset management in multi-manager funds, traditional asset management, collection orders on behalf of customers, and proposals for financial products, as well as legal, tax, and real estate services. The company offers asset management services to institutional customers, such as banks, insurance companies, foundations, and social security institutions; and individuals. In addition, it also provides brokerage services. The company is based in Milan, Italy.

Top 10 Financial Companies To Buy Right Now: Egi Financial Hold Com Npv (EFH.TO)

EGI Financial Holdings Inc., through its subsidiaries, engages in the property and casualty insurance business in Canada, the United States, and Denmark. The company underwrites non-standard automobile insurance, as well as insurance for motorcycles, antique and classic vehicles, trailers, motor homes, and recreational vehicles. It also designs and underwrites specialized insurance programs, such as property, primary and excess liability, legal expense, and accident and health insurance for various businesses and consumers; extended warranty coverage for homes, consumer products, and heavy equipment; and specialized coverage products, such as business interruption and independent truckers insurance. The company sells its products primarily through brokers and agents, benefit consultants, managing general agents, third party administrators, and warranty product distributors. EGI Financial Holdings Inc. was founded in 1997 and is headquartered in Mississauga, Canada.

Top 10 Financial Companies To Buy Right Now: Porter Bancorp Inc.(PBIB)

Porter Bancorp, Inc. operates as the bank holding company for PBI Bank that provides commercial and personal banking products and services in Kentucky. The company?s deposit products include checking accounts, savings accounts, term certificate accounts, time deposits, negotiable order of withdrawal accounts, money market accounts, fixed rate certificates, and certificates of deposit. Its loan portfolio comprises residential mortgage, commercial, consumer, and agriculture loans; and real estate loans, including commercial and residential real estate, and real estate construction loans. The company also provides drive-through banking facilities, automatic teller machines, night depository, personalized checks, credit cards, debit cards, Internet banking, electronic funds transfers, domestic and foreign wire transfers, travelers? checks, cash management, vault services, loan and deposit sweep accounts, and lock box services. In addition, Porter Bancorp offers personal trus t services, employer retirement plan services, and personal financial and retirement planning services. As of July 28, 2011, it operated 18 full-service banking offices in Kentucky. The company was founded in 1988 and is headquartered in Louisville, Kentucky.

Top 10 Financial Companies To Buy Right Now: Sabine Royalty Trust(SBR)

Sabine Royalty Trust receives a distribution of royalty and mineral interests from Sabine Corporation. Its royalty and mineral interests, include landowner?s royalties, overriding royalty interests, minerals, production payments, and other non-participatory interests in various producing and proved undeveloped oil and gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. The company was founded in 1982 and is based in Dallas, Texas.

Advisors' Opinion:

• [By Lawrence Meyers]

  The Sabine Royalty Trust (SBR) is diversified from a geographical perspective, with interests spreading across both producing and undeveloped gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma and Texas.� It essentially operates as a holding company into which all the royalties get deposited and all the money gets distributed to shareholders via its 9.2% yield.