Bank OZK: A Diamond Carved By Time And Discipline

Summary

• Bank OZK's disciplined underwriting and capital allocation have driven, 1300x growth in book value and 17% CAGR since 1997.
• Despite a stellar track record, OZK trades at a P/E of 7, offering a 14% earnings yield and significant compounding potential.
• The market's fears about commercial real estate exposure may be overblown, creating a mispricing opportunity for long-term investors.
• At current valuations, you're buying resilience and proven management, not perfection—history suggests this will quietly compound over time.

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Time is the friend of the wonderful business, the enemy of the mediocre. – Warren Buffett

If one needed living proof that banking—done right—is one of the most potent engines of compounding ever invented, one need look no further than Little

Analyst’s Disclosure:I/we have a beneficial long position in the shares of OZK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.