No. of Recommendations: 7
But...they still only managed a double digit ROE four times within memory.
I think in this case ROTCE is a more meaningful number, unlike BRK they are no serial aquirer.
Their ROTCE for the last five years was 15.5%, 14.86%, 9.48%, 17.02% and 15.15%. Even in 2020
they managed to get 9.48%, not too shabby. Assuming they continue to get a similar ROTCE in
the future, what would you pay for such a business? 1.8x TBV doesn't seem crazy to me.
TBV/share has grown ~5.2% per year over the last 5 years, dividend yield is ~3.1%. So from today
I would expect to get a return of 8.3%/year plus a one time bump from multiple expansion of 40%.
