- Finding a bank to invest in seems like a very time-consuming process. News flash: it doesn’t have to be.
- A quick look at the loan book, historical trends, share structure, and whether the valuation is rational, can all help to determine if a bank deserves more research.
- Bank investing is not as hard as it seems to be.
Have you always been interested in banks but haven’t had the time to fully understand the business model and where to start your research process? I know I have fallen into this camp more than a few times.
What is interesting is that finding an investment research candidate in the banking space is not that hard and does not need to be a timely process. Furthermore, there are a few items that an investor can initially look at which will help decide if further research is necessary. A few areas that have been helpful for me in terms of “weeding out the bad candidates” is: historical trends, share structure, the quality of the loan book and if valuation is rational.
The entirety of the article can be found at Seeking Alpha.