Capital One Financial (COF, Financial) is another long-term Oakmark holding where the stock was dragged into the banking controversy despite not sharing the balance sheet risks (neither securities’ losses nor uninsured deposits) of the failed banks. Capital One has a terrific track record of both growth and risk management under founder CEO Richard Fairbank. We were buying Capital One at roughly 6x this year’s consensus EPS and a discount to tangible book value. Furthermore, we believe long-term earnings power is well above what we will see this year.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund first-quarter 2023 commentary.
