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Royal Bank of Canada (RY)
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Toronto-Dominion Bank (The) (TD)
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Bank of Nova Scotia (The) (BNS)
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Canadian Imperial Bank Of Commerce (CM)
Q: One source describes RBC and TD banks as having wide-moats; BNS and CM banks it describes as having narrow-moats.
Do you agree?
Is this something that someone who has a concentrated portfolio should especially heed?
All the best!
R
By the way, I really appreciate all 5i/Cdn $ Svr does. Thank you!
Do you agree?
Is this something that someone who has a concentrated portfolio should especially heed?
All the best!
R
By the way, I really appreciate all 5i/Cdn $ Svr does. Thank you!
5i Research Answer:
We like companies with moats but do not fully agree here. Canadian banks essentially do the same thing, varying mainly be geography and product focus and degree of conservatism. The Canadian sector is somewhat protected because there is very limited competition with only six big banks. RY as the largest tends to get a higher multiple, which can help its cost of capital. TD has significant US exposure but we would not really call that a moat.