Today we discuss the importance of conservatism in banking and the risks of not managing risk well. He then analyzes the history, business model, and financials of Wells Fargo, noting that the bank is a fundamentally good business with potential for growth. Despite a decline in revenue due to economic headwinds and a scandal related to fraudulent cross-selling, I believe that Wells Fargo is simplifying its operations and positioning itself for strong shareholder returns in the future. While I would prefer a slightly cheaper valuation, I do consider Wells Fargo to be a good business and a potential investment opportunity.

00:46 - History of Wells Fargo
The founding of Wells Fargo by Henry Wells and William Fargo, their early courier business, and the company's expansion to the West Coast during the gold rush.

 05:33 - Divisions of Wells Fargo
An overview of Wells Fargo's four main divisions: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management.

07:38 - Financials of Wells Fargo 
A breakdown of Wells Fargo's revenue, including net interest income and non-interest income, and how the company is still recovering from the scandal related to fraudulent cross-selling.

09:28 - Valuation of Wells Fargo 
Alex Mason discusses the valuation of Wells Fargo's stock, which he believes is relatively cheap at 11 times earnings.

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