5 Financial Services Stocks to Buy According to Nathan Przybylo’s L2 Asset Management

2. JPMorgan Chase & Co. (NYSE:JPM)

L2 Asset Management Stake Value: $2 million

Percentage of L2 Asset Management’s 13F Portfolio: 1.93%

No. of Hedge Fund Holders: 108

In the second quarter of 2021, JPMorgan Chase & Co. (NYSE:JPM) reported an EPS of $3.78, beating estimates by $0.60. The company’s revenue in the second fiscal quarter came in at $30.5 billion, a decrease of $7.9% year over year, and beat analyst estimates by $790 million.

At the end of the second quarter of 2021, 108 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in JPMorgan Chase & Co. (NYSE:JPM), down from 111 the preceding quarter worth $5.2 billion.

In Its Q3 2021 investor letter, Vltava Fund mentioned that it considers JPMorgan Chase & Co. (NYSE:JPM) to be the strongest, largest and most profitable bank in the world. Here is what Vltava Fund has to say about the company:

“While all the previous names could be categorised as founder, continuing, or key shareholders, these last two names fall into the category of hired professional managers. This is actually the most numerous category among the bosses of large companies, but even among them there exist a number of individuals with exceptional long-term track records. In our view, these include also Jamie Dimon and Herman Gref.

We consider JP Morgan to be the strongest, largest, and most profitable bank in the world. It has not always been so, and the fact that it is what it is today can be attributed especially to its CEO Jamie Dimon. Dimon has spent his entire career in banking. He came to JP Morgan in a roundabout way in 2004 after the bank bought Bank One, of which he was CEO at the time. Since early 2006, Dimon has been CEO of the entire JP Morgan.

The quality and strength of JP Morgan under his leadership became fully apparent for the first time in 2008. Not only did JP Morgan help to stabilise the market by taking over the failing Bear Stearns in the spring of that year, but it was the only major US bank that did not require government assistance throughout the Great Financial Crisis and that was highly profitable even in the difficult year of 2008. Today, JP Morgan is even bigger, even more profitable, and even stronger than ever before. Many investors view banks with disdain, but a good bank with good management can be a very good long-term investment. From the time of its merger with Bank One in 2004 through the end of 2020, JP Morgan’s stock has outperformed even the S&P 500 index. The bank has earned a total net profit of USD 330 billion during this period, of which USD 232 billion has been paid out to shareholders in dividends and in share buybacks. I can recommend two books about Jamie Dimon: The House of Dimon and Last Man Standing.”