Why We Own CRBC: Prelude

As per my latest letter to Tarpon Folio investors, I’m going to be posting more about my rationale for buying shares in Citizens Republic Bancorp, or CRBC, here on the blog over the coming days.

First, though, a handful of points:

1. Discussing CRBC here is certainly akin to “talking my book.” So be it. However, to be clear, nothing in this series should in any way be confused with a formal recommendation of any sort. I enjoy educating my investors about the companies we own. Fortunately, they seem to appreciate it, too. These posts are intended for them.

2. In most of my communications with my investors I try to explain my rationale using as little jargon as possible. I feel like anything else comes across as annoying or arrogant. Unfortunately, there is no way to talk about banks without sounding like an alien. So, I will apologize in advance if parts of this series make anyone’s eyes glaze over.

3. If you’re considering investing in CRBC, please do your own homework. I don’t intend to publicly notify anyone when I sell our shares, nor why. I also originally started buying shares in CRBC at prices not insignificantly higher than where they are now. Should the price continue to drop, then all things being equal, I would continue to buy. However, I have the luxury of being able to average down very efficiently. You may not. I also am willing to endure short-term discomfort in order to realize a long-term gain – whether we’re talking about investing, teeth cleanings or rooting for the Dolphins. Again, your circumstances may differ.

Next up – I’ll throw a bone to the stock jockeys, point out a couple more things to be wary of as a bank investor, and then get more into Citizens Republic.

This site and the above are for educational and informational purposes only. Nothing contained here should be construed by anyone as an invitation or solicitation to buy or sell any security. This site does not contain personalized legal, tax, investment, or financial advice. Users of this site should consult with a qualified adviser to obtain advice suited to their personal circumstances. Any links provided here to other web sites are for informational purposes only.

Cale Smith

About Cale Smith

Portfolio Manager at Islamorada Investment Management.
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