Tag Archives: banks

Economic Reality?

11 Oct

“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.
 
When you won, you divided the profits amongst you, and when you lost, you charged it to the bank.
 
You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin!
 
You are a den of vipers and thieves.”
 
 
— Andrew Jackson (7th US President, when forcing the closure of the Second Bank of the US in 1836 by revoking its charter)

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Getty Images Warren Buffett Warren Buffettlikes bank stocks, just not investment banks. And for good reason. By avoiding common stock bets on investment banks like JPMorgan Chase, Goldman Sachs, Citigroup, and Morgan Stanley the “Oracle of Omaha’s” financial sector share investments have greatly outperformed most other investors. Of course, Buffett made preferred share investments in Goldman and Bank of America during the height of the crisis, but these were essentially super-safe loans that guaranteed a return and did not reflect his common stock plays. In fact, as Buffett continued to hold banks stocks as a key part of a U.S. economic recovery investment, the value investing guru has kept his chips smartly behind Wells Fargo — which is projected to end 2012 as America’s most profitable bank — even if the battered share prices, titanic balance sheets, and boom and bust earnings of money center giants lure some of the sectors smartest investors into sub-par investments.

9 Jul

Warren Buffett Shuns Investment Banks, Embraces Wells Fargo

Quote 16 May

A bank is a place that will lend you money if you can prove that you don’t need it.

Quote 16 May

A bank is a place that will lend you money if you can prove that you don’t need it.

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