Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
I think this buy back at 12-14% ROE/ROTCE and the company able to maintain this ROTCE for long time is the magic and differentiation to paying out a dividend.
It is like there is a known potential golden goose but you think there is better things out there than this golden goose. So you rather spend your time to find another.
I think what Victaurs is harping on is that.. you cannot find so many stuff (there are a lot of small banks in the US) that is
- so homogeneous,
- that usually trades around book value
- each has different efficiency
- has a long profile of ROE/ROTCE to review
Just like REITs, if you build up your competency, you might be able to thrive here.
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