Charles Schwab Corporation
Thesis
Schwab is a high-quality business with a wide moat, capable of growing client assets by at least 7% annually and earnings by over 10% with a 100 basis point increase in the Fed Funds rate. The stock trades at a discount to its historical average, presenting an attractive entry point for long-term investors. The expected total return is approximately 16% CAGR over five years, assuming conservative growth and reinvestment of earnings.
Did it work?
The stock has appreciated by 285.9%, significantly exceeding the expected total return of approximately 16% CAGR over five years. This substantial price increase indicates that the thesis of Schwab being a high-quality business with growth potential has played out successfully. Additionally, the stock's performance aligns with the thesis of it being undervalued at the time of the pitch.
Raw excerpt
No raw excerpt stored.