John Maxfield, Editor of the Maxfield on Banks Newsletter on Substack, has spent nearly two decades studying America's best and worst banks, the history of banking, and interviewing bank leaders. John joins the Yet Another Value Podcast today to answer your burning questions regarding investing banks, his mindset during this "crisis" and how to think about investing in banks moving forward.
For more information and to subscribe to John's new substack, please visit: https://maxfieldonbanks.substack.com/
Show notes:
[0:00] Introduction + Episode sponsor: Stream by Alphasense
[1:43] John Maxfield's background and how he got into investing in banks
[4:52] Overall thoughts investing in banks right now in a post-SIVB, UBS buying Credit Suisse world
[8:43] Blood in the streets in banks vs. other markets[12:45] Why are customers with $10-100M running uninsured deposits in First Republic?
[13:55] Regional banks
[21:13] How should folks be weighing the risks with regard to investing in banks?
[26:54] Catalysts that caused the 1873 crisis; what can we learn from that crisis
[29:06] The "everyone needs to chill" model when thinking about run on the banks
[33:20] Bank metrics - how KPIs investors care about have changed/evolved
[35:25] Franchise risk for banks
[38:48] Does what is happening now have an impact on the community banks?
[47:11] Bank stocks that look interesting to John Maxfield in a Post-SIVB world
[57:47] How do you make $$ as a bank investor buying a bank for 4x book value?
[59:47] Generalist interest in banks: what should folks put more weight on when evaluating various investing opportunities (HINT: how did they perform during the 2008 financial crisis)
[1:04:38] How important is speaking with management from bank stocks?
[1:06:41] Closing thoughts
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