A Bank Stock's Real Moat Is on the Deposit Side Of the Balance Sheet
Investors must understand the importance of a financial services entity's most valuable funding source.
Overview
Investors probably think that financial services companies are way too complex to analyze properly. There is some truth to that assumption, but it doesn't mean that the entire industry should be off-limits. Breaking down the key drivers of these businesses is a good first step.
Let's turn our focus to deposits. A bank stock's real moat lies on this side of the balance sheet. Here are three reasons.
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Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.