Wednesday, June 3, 2015

On Wells Fargo, the bank

My three cents.

1. Need to be patient as we're swimming against the tide. It takes at least half a year for the market to realize its value.

2. Need to time the market. When market plunges, most if not all stocks plunge with the low tide.

3. Consider the debt and the net current asset. This bank stock is fine but it is hard to check the quality of the loan. My Pow EY = (Expected Earning) / (Price - (Net Current Asset / Share) + Debt / Share.

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How can the bank not making money? I pay them 4% or so to borrow and receive virtually 0 for interest.

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