Wells Fargo Results Were Terrible, But Here’s Why It’s Still My Top Pick
Macro, Banks, Currencies
Seeking Alpha Analyst Since 2014
* CFA Charterholder with more than a decade's experience in finance
* More than six years' experience in covering banks in developed markets
* Currently covering the US banks exclusively
"Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1."
~ Warren Buffett
Summary
- On the face of it, there’s hardly any positive in Wells Fargo’s 2Q results.
- Margins contracted, non-interest income declined, while expenses jumped and credit costs spiked.
- Capital ratios are solid.
On the face of it, there’s hardly any positive in Wells Fargo’s (WFC) 2Q results. But the stock has enormous upside (50-100%) and is still my top pick!
Analyst's Disclosure: I am/we are long WFC.
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