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Strategies & Market Trends : Buffettology

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To: Paul Senior who wrote (4622)	4/21/2018 10:01:24 PM
From: Spekulatius	of 4690

Paul, I mentioned the 15% ROE number because I think it is pretty much the limit that can be expected for a bank and you verified this. A 15% ROE number for a bank might be great, but it is fairly mediocre for an industrial for example, which is why I wouldn’t call banking being a great business, especially considering the risk on the downside. I have owned some bank stocks in the US and while none of them generated 15% ROE, they did well, but again the valuations have risen to the point, where it is time to pull the chute. I don’t think that most banks are good compounder stocks. AVAL is doing business in Columbia, not in Kiev.

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