Shares of discount brokerage firm The Charles Schwab Corp. (NYSE:SCHW) appreciated in the quarter. Schwab’s core operations continue to perform well. Net new assets are growing steadily and new clients are joining the firm at a record pace. Schwab has been focused on sharing economies of scale with clients through price reductions, rebates, and low-cost products. Despite these lower fees, operating margins continue to expand to record levels through its scale and efficiencies, which we believe bodes well for Schwab’s continued abilities to increase its client base and assets. (Michael Baron)
From Ron Baron (Trades, Portfolio)'s Partners Fund 2018 shareholder letter.
