Shares of brokerage firm The Charles Schwab Corp. (SCHW, Financial) rose in the quarter. The company has been integrating its recent acquisition of TD Ameritrade. The combined company should result in improved services as it cross-sells products to clients of Schwab and TD Ameritrade as well as expense synergies that should lower the cost of operation per custodial asset to industry-leading levels. Finally, Schwab has maintained an impressive mid-single-digit organic growth rate. Once interest rates eventually rise, Schwab's profitability should improve significantly.
From Ron Baron (Trades, Portfolio)'s Baron Partners Fund fourth-quarter 2020 shareholder letter.
