Nearly six years after the financial crisis, I think it’s safe to say investors generally still don’t trust the big investment banks, like Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS) and others. #-ad_banner-#Yet they’re probably still the ones you hear and read about most, if only because they’re the industry heavyweights and get the lion’s share of media attention. That’s a shame. Because it likely causes many investors to overlook smaller rivals with equal or better investment potential but not the stigma the industry “leaders” still have for their major role… Read More
Nearly six years after the financial crisis, I think it’s safe to say investors generally still don’t trust the big investment banks, like Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS) and others. #-ad_banner-#Yet they’re probably still the ones you hear and read about most, if only because they’re the industry heavyweights and get the lion’s share of media attention. That’s a shame. Because it likely causes many investors to overlook smaller rivals with equal or better investment potential but not the stigma the industry “leaders” still have for their major role in the near-collapse of the financial system. One smaller rival has clearly been a far better investment, completely blowing away Goldman, Morgan Stanley, and the capital markets industry as a whole for many years now. During the past decade, this firm’s stock has delivered annual total returns of 12.8%, compared with 7.3% for Goldman and a skimpy 1.9% for the industry. Anyone who owned Morgan Stanley during that time lost nearly 1% a year. One distinguishing characteristic of this smaller rival is a thoroughly conservative approach to business — the firm’s calling card since its inception about five decades ago. Read More