Insights
A Key Factor Separating Bank Compounders vs. Laggards…
Owning a basket of the most efficient banks is a consistently outperforming strategyUpcoming forced selling brings a few opportunities. Sort for efficiency among the forced selling We are currently entering an unusual season, when up to 80 banks are added, but mostly...
Banks are not as cheap as they were, but several strategies still make sense
4 strategies to find performance in an otherwise lofty market
Time to move to the “Coastal”? Coastal Financial (CCB) is different.
Coastal Financial is a bank that has found a way to get pricing power.
Does a community bank want to sell? Use this proxy season to learn the secrets.
Learning the secrets to bank mergers from proxy reports.
Nice rally banks got there…shame if something were to happen to it.
Does the bank rally stall? Reading Warren Buffet's letter this past weekend, bank investors might wonder why Berkshire's investment heads dumped so many banks near the bottom. After all, banks are not far behind airlines and wildcatters in line to benefit from...
Financials outperforming tech? Yes it can continue.
The friendly folks at Goldman recently ran a regression of which sectors do well with rising rates. If you can't read the chart below, rising rates are bad for stocks in the consumer, utilities, and software sectors, while they tend to support energy and financial...
Tools for Financials Investors Nervous About Inflation and Rates
We'll skip the Charlie Munder quotes; it's broadly apparent that we live in different times: US Debt: Inflation is the Only Way to Manage It (Treasury Dept) Nervousness is rational: Normally we don't see policymakers launch gargantuan, two-pronged stimulus 6 months...
A Tool for Outperformance: Finding Great Businesses Hidden Inside “Boring” Banks
Improve portfolio growth by avoiding the "clones" Owning typical banks can be a losers game. Most banks compete on price, fight low rates, and miss out on innovations like digital currencies. For these reasons among others, regional banks have lagged the broader...
Now the fun begins! Bank merger investing in 2021…
We lost a lot in 2020, but we are getting a lot of it back in 2021. One bit of good news apparent in fourth quarter earnings calls is the coming return of the bank merger and merger premium. Connecting the dots to create a portfolio of likely acquisitions should be a...
The worst large bank in America? (a constructive 3 minute exercise)
Many years ago I attended a dinner with a group of bank investors, including a good friend later profiled in the movie The Big Short. The topic of Fifth Third came up. Fifth Third had recently sold its payments business to scrounge up capital and my friend blurted out...