Why do we not own any Mid Sized Banks
A question that remained unaddressed in the last Q letter to Partners was “Why do we not own any Mid-sized Banks?”
Banks can be attractive businesses to own as they enjoy natural growth tail winds of growth while delivering 15-18% ROE. However, over the last decade, only 3 Banks (representing < 15% of Industry Assets) have delivered over 15% PAT growth or above 15% ROE consistently.
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