5 Banks Warren Buffett
Should Buy (or buy more of)
Toronto-Dominion (TD) Bank
Toronto-Dominion Bank (TD)
• TD Bank’s competitive advantage is its unmatched convenience
• Most branches are open 7 days a week, and on holidays
• Drive-through services are open until midnight in many locations
Goldman Sachs (GS)
Goldman Sachs (GS)
• Goldman Sachs has the advantage of being able to recruit the best talent on Wall Street
• Warren Buffett himself referred to an investment in Goldman as a “bet on brains”
• Buffett bought Goldman warrants at the height of the financial crisis, resulting in a 2.8% stake in the company
State Street Bank (STT)
State Street (STT)
• The lowest level of nonperforming loans and assets of any bank
• Effective 0% rate of loan delinquencies
BB&T Corp (BBT)
BB&T Corp (BBT)
• BB&T’s insurance business has one of the fastest growth rates in the sector, up 15% from last quarter
• Unlike many other large banks, BB&T has lots of room for growth, with a relatively small geographic footprint
• Management has expressed interest in expanding in Texas, Tennessee, Georgia, and Maryland
Prosperity Bank (PB)
Prosperity Bancshares (PB)
• Named America’s Best Bank by Forbes Magazine
• 0.1% of Prosperity’s loans are nonperforming
• Prosperity has more than 11 times the value of their nonperforming loans in reserves
Warren Buffet Just
Bought 9 Million Shares