Today we discuss the importance of conservatism in banking and the risks of not managing risk well. He then analyzes the history, business model, and financials of Wells Fargo, noting that the bank is a fundamentally good business with potential for growth. Despite a decline in revenue due to economic headwinds and a scandal related to fraudulent cross-selling, I believe that Wells Fargo is simplifying its operations and positioning itself for strong shareholder returns in the future. While I would prefer a slightly cheaper valuation, I do consider Wells Fargo to be a good business and a potential investment opportunity.
00:46 - History of Wells Fargo
The founding of Wells Fargo by Henry Wells and William Fargo, their early courier business, and the company's expansion to the West Coast during the gold rush.
05:33 - Divisions of Wells Fargo
An overview of Wells Fargo's four main divisions: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management.
07:38 - Financials of Wells Fargo
A breakdown of Wells Fargo's revenue, including net interest income and non-interest income, and how the company is still recovering from the scandal related to fraudulent cross-selling.
09:28 - Valuation of Wells Fargo
Alex Mason discusses the valuation of Wells Fargo's stock, which he believes is relatively cheap at 11 times earnings.
Email: alex@stockstoriespodcast.com
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!