The SAVR Checklist for Analyzing Banks

Via Pope Brar

Let’s Remove “The Black Box”

“It’s a black box. Too much risk. I don’t understand banks”. These are the common statements one hears with the mention of a bank as a potential investment. The recent financial crisis has negatively impacted the perception of banks and revealed hidden “spider webs” in the financial statements. The following checklist is based on our analysis of banks, and includes past mistakes of great investors such as Warren Buffett, Bruce Berkowitz, Peter Lynch and more. The checklist focuses on the four pillars of our investment analysis: 1. Sustainability of the business model, 2....