A notable investor buys banks

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You have to admit, nobody will say he doesn’t count as smart money:


“Bond king Bill Gross said Friday he’s bought stock in four beaten-down regional banks as well as an exchange traded fund made up of banks, after a rough few weeks for the sector in the wake of the collapse of Silicon Valley Bank. 

“Gross . . . wrote in his latest Wall Street Playbill that he’s had a ‘long-term wish to own a bank.’

“Now he’s become a banker by proxy’ through ownership of regional bank stocks, which he said offered him an attractive entry point. . . . 

Despite his past criticism of banks for causing the Global Financial Crisis in 2008, Gross said he’s always wanted to start a bank because ‘it’s a license to make money even when run conservatively.’” [Emphasis added.]

“A license to make money.” Well, yes, that’s what you get when you can borrow money at the risk-free rate. He really doesn’t make it sound complicated, does he?

What do you think? Let me know!