Everyone has hobbies, right? Some folks like golf. Some people hunt. Some garden.
I like to crunch numbers and test investing theories.
I once spent an entire three-day holiday weekend at a friend’s place in Chicago, running correlation studies of every conceivable economic indicator to see which ones were predictive of stock market movement. The only time we left his condo was to head down to the old Melvin B’s on Rush Street for burgers and beers to fuel the next round of number crunching.
This kind of thing is legitimately fun for me, but more importantly, it makes me a better investor. The quantitative approach takes all the emotional guesswork out of making money.
(Case in point: One of my recommendations from a little over a month ago is doing over double the S&P 500’s returns right now across the same time frame, and I expect it to keep going.)
One of the best ways I’ve found to make consistent money in the stock markets is to buy bank stocks with high yields and low price/earnings (P/E) ratios. It produces results that would make Warren Buffet and George Soros weep with envy – just the top 20 of the stocks on my list doubled the S&P 500 over the last decade, during one of the best decades in its history.
The best part is, this strategy even works in a bad market. For example, during the lost decade of 2000-2010, using my high yield bank stock approach would have turned every dollar invested into $13 when the indexes didn’t even break even.
Today, I want to share two stocks that popped up on the model recently, both fantastic franchises with solid balance sheets and clean loan portfolios.
Each one is providing yields well over 4%, and I think they both have plenty of room to run…
This Regional Bank’s Lending Portfolio Is an Income Machine
First Interstate Bancsystem Inc. (NASDAQ: FIBK) is the holding company for First Interstate Bank. The bank has 150 branches and does business in its home state of Montana as well as Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. It…
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