Bloomberg writes that Raymond James Financial Inc., the brokerage that posted profits for 100 straight quarters, is showing investors that simplicity is key to generating gains.
With headquarters 1,200 miles from Wall Street, the St. Petersburg, Florida-based company produced the best risk- adjusted return of nine
brokerages, banks and advisory firms since 2009, the Bloomberg Riskless Return
Banking shows. JPMorgan Chase, the biggest U.S. bank, ranked third as Bank of
America, Goldman Sachs and Morgan Stanley were among the worst performers.
Investors compare Raymond James, which has a business model that’s easy to grasp and shields the balance sheet from risk, to an asset manager as it mainly relies on fees. Unlike larger rivals, the brokerage gets most of its sales managing investor money, earning 64 percent of annual revenue in the last fiscal year from its private-client group. That gave Raymond James the stability to weather a financial crisis that caused larger banks to write off billions of dollars in loans….