Friday, August 12, 2016

Banks Feel the Heat?

Here is an article I came across that I meant to comment on.  Apparently the big banks are starting to feel the heat just a bit as nimbler financial services companies are eating into their transaction volume.

The article specifically mentions Venmo,
which is owned by one of our favorite holdings PayPal.  The big banks decided that working together is their best option in competing against PayPal and other P2P payment services.  That reeks of concern more than I think people realize.

I'm not overly concerned about the portfolio's performance with this news.  This is a big field with plenty of room.  Does it mean potentially less earnings in the future? Yes. Does it mean our stocks will suffer? Possibly, but I'm willing to bet our best of breed fintech companies will do well despite these challenges. Remember we are here for the long haul and our companies will compound their earnings considerably by then.

No comments :

Post a Comment