Insights

Bank investors have outperformed the broader markets by over 10% so far this year, and those of us hidden in the corners owning small, well-run banks may be doing a bit better. (banks in yellow vs S&P 500 in red below) With that said, we need to bring our...

Below are a few simple lessons I have learned over the years that may help you as you consider your portfolio during the current "turn" in markets. Be aware of the quality of the businesses you own.  Don't assume a stock "will always come back" if you hold through,...

First, I will not get to speak to most of the folks reading this, but if you celebrate Christmas I wish you an enjoyable holiday, hopefully surrounded by friends, family or both… Most of us know how compounding works.  The rub is how difficult it is to apply.  Out of...

From time to time I will write about client positions, not as investment advice but to share some of the lessons we learn from inside the sector.  Your comments or outreach are welcome via our contact page. As flexes go, the above paragraph above, hidden at the bottom...

As banks rally at the same time many of them are making low ROI loans, we're spending a minute this afternoon making sure folks know what they are getting when they buy the sector. Is banking a good business?  A good business returns more than its cost of capital...

Last week Pacific Enterprise (PEBN) announced it was selling to Bay Commercial (BCML). Pacific Enterprise is a $650 million, 1-branch bank in Irvine, CA with 1/3 of loans in PPP, typically earning 7% ROE at 65% efficiency. Normally PEBN holders would read the merger...

We have gotten a number of questions about what digital currencies mean, so below is a brief primer on their current status and potential impact. While this topic may seem wonky today, we will all at some point in the next few years likely have the option of a digital...