Wednesday, October 20, 2004
I met an old friend of my mine, Steve, for a Starbucks this afternoon. Steve is a wildly successful money manager. We stay in touch from time to time and bounce ideas off of each other. I do a lot of foreign investing so Steve asked what I thought about HSBC Holdings. Coincidently I had an opinion from an article I wrote about European Bank Consolidation that I submitted to the Fool but they did not run. I told him I liked Barclays better because iShares is only 15% of their business and should grow very quickly and it has a better dividend than HSBC. But the thing about HSBC is that while they stand to open a lot of bank accounts in China, I think it will be tough for them to make a good profit on what is likely to be a lot of very small accounts. The idea, whether I'm right or wrong, is very simple. I don't like the answer to that question so that is the end of the work on HSBC. Very simple, no? For disclosure purposes while I like Barclays, there is another UK bank I like more so I do not own Barclays personally or for clients.
Posted by Roger Nusbaum at 3:14 PM