Shares of brokerage business The Charles Schwab Corp. (NYSE:SCHW) rose over 25% in the fourth quarter on the expectation of multiple interest rate increases in 2017, which should bode well for the company’s earnings. Charles Schwab also reported solid asset growth reaching over $2.7 trillion. The business continued to shift to fee-based advice from trading activity, a move that we believe creates more stability and the potential for increased profitability.
From Baron Funds' Fifth Avenue Growth Fund fourth quarter 2016 commentary.
