Key Points

Berkshire Hathaway's cash reserves have climbed to $397 billion.
JPMorgan Chase keeps delivering strong results and holds ample cash reserves, readying it for possible market slides.
BlackRock manages nearly $14 trillion in assets and stands ready to expand as financial markets advance.

Markets have swung sharply over the past two years, with investors facing corrections of at least 10 percent before solid recoveries. Volatility could persist due to rising geopolitical strains, expanding government deficits, and ongoing pressure from elevated prices on consumers.

Combined with a high cyclically adjusted price-to-earnings ratio, this environment may lead to another pullback. Should markets decline, having a shortlist of attractive stocks ready would prove useful.

If a downturn unfolds, here are three financial stocks I would acquire promptly.

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Berkshire Hathaway Maintains Its Huge Cash Position

Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) operates as a vast conglomerate now led by CEO Greg Abel. Abel steps into a demanding role following Warren Buffett, prompting questions about whether he can extend the company's long record of success.

Buffett and longtime partner Charlie Munger shaped Berkshire into a diversified powerhouse spanning many sectors. This structure generates substantial cash, and reserves continue to build.

Over the past year Berkshire produced nearly $24 billion in free cash flow. It has also trimmed parts of its investment holdings, lifting cash to $397 billion by the close of the first quarter.

Critics note the firm missed portions of the recent equity rally, yet its value discipline has produced steady long-term returns with less volatility than broad indexes.

Berkshire trades at 14.4 times earnings with tempered growth forecasts. In a correction it would become especially attractive, as the large cash pile could finally be deployed at favorable prices.

JPMorgan Chase Stands as the Banking Industry Leader

JPMorgan Chase (NYSE: JPM) ranks as the largest U.S. bank, holding more than $3.7 trillion in total assets. Under CEO Jamie Dimon it has scaled far beyond peers, with assets exceeding those of Wells Fargo and Citigroup together, reflecting disciplined growth.

In the first quarter the bank posted $16.5 billion in net income and a 23 percent return on tangible common equity. Markets activities performed well and investment banking fees rose 28 percent. It also maintains a $1.5 trillion liquidity buffer in cash and marketable securities, providing flexibility during any credit or economic slowdown.

Looking forward, JPMorgan sees chances in global infrastructure financing such as data centers and utilities, plus rising defense outlays tied to worldwide remilitarization. Dimon anticipates further large mergers where scale offers an edge.

Should markets weaken, JPMorgan would rank among the top banking names to purchase on weakness.

BlackRock Remains a Global Asset Management Powerhouse

BlackRock (NYSE: BLK) leads the asset management field with almost $14 trillion under management. It blends traditional asset management with technology to serve both public and private markets, offering clients integrated solutions.

The firm has gained from rising interest in low-cost exchange-traded funds. Its iShares lineup, described by CEO Larry Fink as unmatched, covers broad index products like the iShares Core S&P 500 ETF, sector-specific funds, and thematic strategies including low-volatility, clean energy, and Bitcoin exposure.

In the first quarter BlackRock attracted $130 billion in net inflows, lifting organic base fee growth by 8 percent. These recurring fees deliver stable revenue across market cycles. Revenue climbed 27 percent year over year to $6.7 billion, supported by inflows and higher asset values.

Investors seeking exposure to expanding financial markets would find BlackRock compelling on any market dip.

Should You Purchase Berkshire Hathaway Shares Today?

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Wells Fargo is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Courtney Carlsen holds positions in Berkshire Hathaway, Bitcoin, BlackRock, and JPMorgan Chase. The Motley Fool holds positions in and recommends Berkshire Hathaway, Bitcoin, BlackRock, and JPMorgan Chase. The Motley Fool maintains a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.