Morgan Stanley (MS)

He doesn't trust the regional banks, expecting more consolidation. Prefers big banks, so he's holding onto this. In Q4, he expects the S&P to make a new high, so trading revenues for the banks will be strong. You have to own financials now.

More than 50% of business in wealth management business.
Doesn't need corporate finance business to thrive.
As economy grows, company will grow with it.
Higher interest rates not affecting business in a bad way.
Trading at 12x earnings(cheap), with ~3% dividend yield.

CEO thinks economy will see a nice recovery in back half of this year. Great job building out asset and wealth management, and so ROE has continued to increase from 10% to 16% in a decade. Buying back stock. Good entry point with the banking turmoil. Cyclical low in banking will come back in 2024-25. Yield is 3.47%.

Owns shares in the company.
Excellent company for the long term.
Concentrating in the wealth management side of business.
Very active in M&A wealth management. 
Good long term prospects for the business. 

Reported this morning and shares sank like a rock. Loan losses came in much higher than expected and the investment banking line was disappointing. But only net new assets matter, because MS is in the asset management business; it took in $110 billion which doubled the previous quarter. This number told him that MS was golden. MS shares rallied from that early low to finish slightly positive.

They report next Wednesday. They're not exposed to the lending business, and are a juggernaut in wealth management to rich clients. Avoid the regionals.

Well-capitalized bank. Boast a great management business.

Beat market expectations.
Cutting jobs recently.
Would hold shares for the long term.
One of the best US banking stocks.
Very good long term investment.