Is Credit Suisse a good buying opportunity now that it’s cheap? We discussed the topic of big mainstream banks and how they keep up with new technologies and services during one of our online Coffee break stock investment chats.
Full disclosure: Obermatt CEO Dr Hermann J. Stern's son is employed by Credit Suisse as an apprentice.
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There are several factors which motivate Dr. Hermann Stern to evaluate Credit Suisse. First, the rising interest rates will give banks an advantage in the future. Second, the world is currently in a not-so-certain geopolitical situation. Finally, there is an ongoing smear campaign against Credit Suisse for things in the past that are illegal in Switzerland today. So the smear campaign is more historical than real. While in fact irrelevant today, it directly affects the stock price. Dr. Stern thinks Credit Suisse is a good company and has been penalized too much.
Today, most big banks have operational difficulties. Be it their general sluggishness when it comes to introducing modern technologies in the field of communicating with their clients, or the expensive fees for day-to-day banking operations. For example, Stern saves a lot of money just on exchange rates when he uses a fintech service like Revolut. It seems that mainstream banks have a hard time keeping up. For these reasons, they are cheap now. This is why Stern buys Credit Suisse stock now when they are really good value.