Marc Rubinstein, Founder and Editor of the Net Interest Newsletter, is back on the Yet Another Value Podcast to have a wide-ranging discussion digging into Marc's thoughts on the current state of banks, financial sector, as well as dissecting his article on what makes Capital One $COF interesting.
For more information about Marc Rubinstein, please visit: https://www.netinterest.co/
Article on Capital One: https://www.netinterest.co/p/capital-one-buffetts-latest-banking
Article on Charles Schwab: https://www.netinterest.co/p/vivat-charles-schwab
Chapters:
[0:00] Introduction + Episode sponsor: Stream by Alphasense
[1:50] Overall thoughts on what's going on in the financial space
[5:15] Banks are balance sheets
[9:23] Why is tangible book value good? Why can't we go to half of tangible book value for a long time?
[13:47] Activism in community banks
[16:50] Wave of bank consolidation coming?
[19:06] Advantages in small banks
[22:32] History of Capital One $COF and what makes them interesting
[33:33] Marc's thoughts on the bank failure reports and has the way banking works fundamentally changed?
[42:11] Why isn't $COF not interested in buying regional banks anymore?
[48:58] Buffet attracted to the online side of or is he actually attracted to the diversified, consumer-focused nature of these banks?
[51:39] Does Capital One have a technology / marketing advantage versus other people?
[58:06] What does the future look like for Charles Schwab $SCHW?
[1:05:39] Current valuation of $SCHW
[1:07:36] Earnings issue, not liquidity issue
[1:09:27] Are we underestimating how profitable banks will be coming out of this banking crisis?
Today's episode is sponsored by: Stream by Alphasense
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