Balance Quote by Barry Ritholtz
“If you think too-big-to-fail banks are not worthy of investment because of their impossible-to-read balance sheets, well then, don't buy them.”
About This Quote
Source Book: The Big Money, Barry Ritholtz, 2009
Avoid investing in large banks whose financial statements are opaque and risky.
In simple terms: Don’t invest in big banks with unreadable balance sheets.
Steer clear of opaque big banks.
Themes
Mood
Type
When to use this quote
- portfolio construction
- risk assessment
- due diligence
Key Concepts
Questions to Reflect On
- How do you verify a bank’s true financial health?
- What alternatives exist to large bank exposure?
Even large banks can hide hidden liabilities despite size.