No. of Recommendations: 4
Snip from that blog post:
After opening a position in COF last quarter, Berkshire tacked on another 2.5 million shares in Q2.
Back in July, I linked to Berkshire director Chris Davis's recent interview with Barron's ' in which he laid out his bull case for the bank holding company. Here is what Davis had to say'
"Capital One has been a fintech company since the start. It uses data science to market financial services. It is still run by its founder, Richard Fairbank. The bank pays a high rate on its deposit base. It is a big issuer of credit cards ' primarily to working people, not big spenders. The best analogy is Progressive, a data-science company disguised as an insurer. Progressive realized early on that there is no bad risk; there is only bad pricing.
"Capital One has matched its loans to its deposits. At around $100 a share, it is trading right around tangible book value, for a business that has had a low- to mid-teens return on equity for 35 years."
Does anyone have any thoughts on Capital One Financial (COF)?
Current price about $107.
As with most financials the temptation is to put it into the "too hard" pile, but Berkshire is a better source for stock ideas than the average CNN show
Jim
