“He who is aggressive when things are dicey sometimes comes out ahead. The bank that pulls in its horns and doesn’t want to do anything is going to miss out” (Mike Renninger)
As with the rest of the country, the financial institutions in our area have been beaten down by the credit crises. These institutions are faced with some incredibly difficult decisions that could make or break their future. However, the structure of most of these decisions was made long ago. The strength of the institutions balance sheet will determine whether they can be a hunter or will be hunted.
By making sound decisions when all around them were driven by greed, certain financial institutions can now aggressively go after value opportunities in the market. In addition, they do not have the black eye of bad press on their lending loss write-offs.
Oh the beauty of a strong balance sheet. With it, you have opportunities. Without it you have many sleepless nights. The opportunities certain financial institutions will enjoy in the near future are the byproduct of good choices made in the past. These choices will allow them to add to their war chest at bargain prices.
This phenomenon is not isolated to the financial institutions. Every business goes through ups and downs. It is important to make good choices in both the good times and the “bad”. By evaluating market conditions, industry trends, competitors, products and many other factors, companies can get a competitive advantage.
It is interesting. I seem to find that those that are conservative during good times and aggressive during down times seem to get the advantage.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment