Charles Schwab: The 8 Trillion Dollar Gorilla

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[00:03:30] - [First question] - Why Schwab isn’t well understood by the market 

[00:05:18] - The story of Charles Schwab and how active he is in the company 

[00:08:13] - The business model of Schwab itself; Holland Advisors Research

[00:12:51] - Can it be compared to a franchise model; Another Flywheel

[00:15:46] - What did they see in the space that convinced them to shift their business model

[00:18:19] - How Schwab benefits from their customers keeping money in cash

[00:20:18] - What stops competitors from copying the Schwab model

[00:23:12] - Where Schwab stands out with cash on the balance sheet

[00:24:17] - The reasoning behind the TD Ameritrade acquisition

[00:30:38] - The Schwab customer base 

[00:33:28] - Convincing new customers to transfer their accounts to Schwab

[00:37:14] - How their market share has changed over the years

[00:38:50] - Building their balance sheet 

[00:46:34] - How their acquisition of TD Ameritrade helps their balance sheet

[00:49:50] - Valuing a complex business like Schwab

[00:56:43] - Key drivers of their earnings growth 

[00:58:31] - How they use their net interest margin 

[01:00:43] - What the market pullback this year has meant for Schwab

[01:03:43] - Major lessons learned from analyzing Schwab