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 U.S.
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….
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