JP Morgan Chase & Co (JPM)

Her core US bank holding. Share price has gone up, but earnings have been growing. Company sees consumer doing OK in a pretty strong economy. Increasing loan provisions slightly. Net interest margin coming off a bit with interest rates being cut, but JPM sees that pivoting next year. 

Very high ROE of 16%, very high operating efficiency. Very strong balance sheet. CEO prefers liquid cash on the balance sheet instead of bonds, which allowed them to buy First Republic. She's increased her weighting.

Peer-leading multiple, around 14x earnings. Very well run. Likes it, but valuation keeps him away. For new money, hunt for more value.

His top choice in the space, one of his top 5 holdings. We're into an easing cycle on rates. What's working in the market are early cycle companies, rather than late cycle. Likes financial services in general. 

Best managed, strongest balance sheet, spending the most on technology. Dominant player, buy the best company in the sector first. He'd buy today.

Trades at a premium valuation, so he prefers Citi and Bank of America for lower valuations.

Owns both, for different reasons.

JPM is the best bank in the US, perhaps the world. Jamie Dimon is the smartest banker around, and has his own money invested in the bank. Management has a deep bench. Not cheap, but he's not selling. Might grow 12-15% a year.

Citi is a turnaround, trades below book value. Most of the others trade at a premium. Owns a number of great, capital-light businesses. Doing a good job getting out of the morass of last 15 years. Doesn't usually buy turnarounds, but at 1/3 book value it was too cheap to pass up. Looking for a double in the next 3 years.

In the 2009 crisis, JPM almost wasn't involved. Made a new high in 2013, sector not until 2021. Best management and balance sheet. Spent the most on technology. Most efficient. Raised dividend twice in last year. Gold standard in the sector globally. Centrepiece of any portfolio. Yield is 2.1%.

It benefitted from volatility in the regional banks last year (JPM bought a regional). Great track record and management. 

The best bank in the world. They continually do well and exceed expectations. A great CEO. But at 2x book now, it's not cheap, though trading at only 11.5x PE. Not a screaming buy, but good enough given the quality of the bank.

Banks are reporting today and shares are down. JPM reported loan-loss provisions now at $3 billion instead of $2.8 billion. JPM expects the consumer to be weaker. That's a concern.

Trades at a low 12X PE, less than the average stock. It's the best big bank, possibly in the world.

They warn of a new chequing fee. He likes how the CEO is growing more risk-averse and managing risk more. That keeps JOM on top of the banking sector.

High quality. Growth. Stress tests have been good. If you don't want to be penalized by the currency exchange, consider buying the CDR, for which you pay a small fee.

As a large, money-center bank, JPM benefitted from huge outflows when the regional banks melted down in March 2023. They boast a strong balance sheet.

US banking has done better than Canada, but there are better places to put money. This one has done quite well. First place to look is around $194. Once it goes past that, the next level would be $186. Final on-sale price would be $170. 

If you have a long horizon, don't get too cute with the buy price, as the price targets are never that precise. Pick up a partial position at a reasonable price. If it starts to move higher, perhaps add your remaining position. Sometimes you have to use good portfolio management, rather than technical analysis.