In our latest analysis, we’re diving deep into the 10 Best Stocks to Buy, focusing particularly on First American Financial Corporation (NYSE:FAF) and its standing among top picks from John W. Rogers of Ariel Investments. Let’s explore what makes Rogers a trustworthy name in the investment community and how FAF measures up.
John W. Rogers Jr. is not just another name in finance; he’s a pioneer and a testament to success in the investment landscape. As the chairman, CEO, and CIO of Ariel Investments, Rogers has cultivated a legacy since he founded the firm in 1983—the first Black-owned mutual fund company in the U.S. Starting with $200,000 backed by family and friends, Rogers’ journey began with significant contracts, including managing Howard University’s endowment. Fast forward to today, Ariel Investments manages a robust $12.9 billion in assets.
Throughout his career, Rogers has weathered multiple market challenges, including the infamous Black Monday crash in 1987 and the dot-com bubble. While many investors panicked during these downturns, Rogers remained committed, applying his value investing strategy—a method he learned from the likes of Warren Buffett and Benjamin Graham. His philosophy centers around identifying undervalued stocks that promise substantial long-term returns.
In a recent Bloomberg Invest Conference, Rogers emphasized how many market participants fixate on short-term trends. He advocates for taking a longer view, suggesting that investors looking three to five years ahead will uncover promising opportunities often missed by others.
Ariel Investments is staunch in its value investing philosophy, especially during these volatile times. Their recent Q1 2025 Investor Letter highlights the challenging market landscape:
“Most major U.S. indices ended the first quarter of 2025 in the red. While fear gripped investors and optimism for U.S. market resilience waned due to tariff concerns and policy uncertainty, outright value outperformed growth. We are strategically acquiring shares of quality companies at discounted prices, believing that their true value will be realized in the long term.”
First American Financial’s Position
Within Rogers’ portfolio, First American Financial Corporation plays a unique role. As of Q4, Ariel Investments holds a stake valued at $249.3 million in FAF, with 28 other hedge funds also backing the company. FAF primarily operates in the insurance and settlement services sectors, focusing heavily on real estate—a business strategy that ties closely to housing market fluctuations.
FAF recently reported Q1 earnings per share at $0.84, beating analysts’ expectations, alongside revenues reaching $1.58 billion, signaling strong performance, particularly in its Title Insurance and Services division. However, while FAF ranks 6th on our list, we believe that certain AI stocks may present even more promising short-term opportunities. For example, while popular AI stocks have dipped around 25% this year, one particular AI stock has seen a notable rise since early 2025. If you’re interested in exploring lower-risk, high-potential AI investments, check out our report on the cheapest AI stock.
What Next?
The investment landscape is constantly evolving. If you’re eager to stay ahead of trends, don’t miss our upcoming analysis on the 20 Best AI Stocks to Buy Now and the 30 Best Stocks to Buy According to Billionaires. These articles can provide fresh insights into lucrative opportunities.
Disclosure: None. This article is originally published at Insider Monkey.