The recent volatility in the financial sector is a reminder that the banking sector is not, nor has it ever been, a safe place to invest. Using borrowing or leverage in any business always increases the risk of failure, but banks’ entire business model depends on leverage. Fractional-reserve banking, where only a fraction of a bank’s deposits are available for withdrawal at any point, is a very aggressive form of leverage. Q4 2022 hedge fund letters, conferences and more However, fractional-reserve banking has been fundamentally important to the growth of the global economy. It’s entirely safe if used sensibly. Unfortunately,…
How To Build A Stable Bank Charlie Munger Style
Rupert Hargreaves
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk
