The Motley Fool: Citigroup could be good long-term play as a woman CEO takes the reins
Plus: The basics of Medicare Advantage Plans and this week’s trivia
Citigroup is soon to be under new management with incoming CEO Jane Fraser the first woman ever to lead a large Wall Street bank.(Scott Eells - Bloomberg)
By The Motley Fool
The Motley Fool Take
Citigroup is a blue-chip stock on sale, with its shares recently down almost 20% from their 52-week highs. One of the biggest banks in the world, Citigroup has been pressured by the pandemic and fears of what it might do to Citigroup’s business. Low interest rates have also hurt its ability to generate meaningful interest income, while employee errors also cost the company.
The downside of offering new shares for sale is that doing so dilutes the value of existing shares. Imagine, for example, a company with 100 shares of stock outstanding. If you own 10 of them, you own 10% of the company. If it issues 20 more shares, though, your 10 shares will only be 1/12th of the company, or 8.3%.
Q: What are the best books about Warren Buffett? – P.L., Wilkes Barre, Pa.
A: Try Roger Lowenstein s Buffett: The Making of an American Capitalist (Random House, $20) for a great review of his personal and business history, along with his investment thinking. You can learn a lot through Buffett s own words via Carol J. Loomis Tap Dancing to Work: Warren Buffett on Practically Everything, 1966-2013 (Portfolio, $18) and Lawrence A. Cunningham s The Essays of Warren Buffett: Lessons for Corporate America (Carolina Academic Press, $35).