Charles Bobrinskoy, vice chair at value investor John Rogers fund Ariel Investments was on CNBC to discuss his thesis on U.S. banks, which he thinks are very attractively priced and offer once-in-a-lifetime opportunity.
-- Wells Fargo (WFC) is one of the best-run banks and don't have any of the headwinds which other banks have. -- But WFC is fairly valued relative to JPMorgan (JPM) and Citigroup (C), which are trading at less than book and C almost 50% of its book. -- Capital market activity is much better than markets are predicting, bond market is extremely active, leveraged financed activity is up, and all of this will benefit JPM. They are going to deliver a monster quarter -- Markets have run up except the financials. People are scared of investing in financials. -- Financials will always be risky stocks, but they are the cheapest right now and offer once-in-a-lifetime opportunity.
Credit and source: www.cnbc.com, CNBC
Here is the video:
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