Author Topic: Capital Return  (Read 5333 times)

SwedishValue

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Re: Capital Return
« Reply #20 on: December 04, 2019, 02:12:57 AM »
Dynamic, thanks for your informative post. It is very well written, and also well researched. I feel like the grinch coming off with my negative comments, but here goes my thoughts:

Had you made the post one year ago, I would have thought that such a scenario that you are describing would be at least somewhat likely. However, seeing that Buffett has had ample dry powder and at the same time the opportunity to purchase shares in JPM, he chose to do so on a very minescule scale. Today, prices are considerably higher. Therefore, I think we are very unlikely to see any form of active capital allocation into banks at current prices. If we see prices drop more than 30% that might change, but such price movements are rare.


RadMan24

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Re: Capital Return
« Reply #21 on: December 14, 2019, 11:37:43 AM »
Dynamic, thanks for your informative post. It is very well written, and also well researched. I feel like the grinch coming off with my negative comments, but here goes my thoughts:

Had you made the post one year ago, I would have thought that such a scenario that you are describing would be at least somewhat likely. However, seeing that Buffett has had ample dry powder and at the same time the opportunity to purchase shares in JPM, he chose to do so on a very minescule scale. Today, prices are considerably higher. Therefore, I think we are very unlikely to see any form of active capital allocation into banks at current prices. If we see prices drop more than 30% that might change, but such price movements are rare.

Oh that's not true, particularly for levered financials.