We Study Billionaires - The Investor’s Podcast Network TIP267: An Intrinsic Value Assessment w/ Sean Stannard-Stockton (Business Podcast)
Nov 3, 2019
Sean Stannard-Stockton, President and CIO of Ensemble Capital, dives deep into the intrinsic value of First Republic Bank. He explains why the bank operates like a retail business with exceptional customer service aimed at high-net-worth individuals. The discussion reveals key metrics for valuing banks, including tangible book value, and offers insights on navigating low interest rates and Bitcoin's rising influence. Stannard-Stockton also shares valuable tips on stock picking, particularly for busy investors balancing full-time jobs.
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Competitive Advantage
- Focus on competitively advantaged businesses, which possess structural defenses against competition.
- These advantages simplify valuation by reducing unpredictable competitive pressures.
FRC: A Retail Business
- Sean Stannard-Stockton learned about First Republic Bank (FRC) from investor Sean Kravitz, who described it as a retail business.
- FRC prioritizes superior customer service for high-net-worth individuals, differentiating it from traditional banks.
FRC's Niche Market
- First Republic Bank (FRC) targets high-net-worth individuals in specific metro areas, indicating a niche market focus.
- This concentrated approach allows for specialized service and strong growth despite limited geographic reach.