An Hour with Mike Mayo, Part 2
This is part two of an hour long conversation with Mike Mayo, CFA, a banking analyst at CLSA and author of Exile on Wall Street, which details his long and very interesting career. We start this portion of the conversation by talking about the peculiar nature of growth in financial companies. Mike explains that one of the most important things to remember when analyzing a bank is that their product is money. To grow at an above-average clip they can simply sell more money or — as it is typically described — make more loans. When asked to categorize the various banks that he analyzes, he makes a distinction between two types of banking companies: banks that are well-run and banks that aren’t. To hear how he analyzes that, please listen to the podcast below. Part one can be found here.
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