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TheStreet Open House

Warren Buffett's Faith in Jamie Dimon

Stocks in this article: BRK.ABRK.BJPM

Buffett seems to agree that companies are better off if the Chairman and CEO roles are split, though he seems to make exceptions for people he views as truly extraordinary. Like Jamie Dimon. And like himself.

Buffett's legendary record as an investor does not need repeating. As for Dimon's record, Rafferty Capital Markets analyst Dick Bove does a fine job breaking it down for us.

From his report Monday:

  • Jamie Dimon joined Bank One in 2000. The company lost $511 million that year. In its last quarter prior to its merger with JPMorgan Chase... (Q2 2004), Bank One's annualized earnings were $4.4 billion. On a pretax, pre-provision basis, per share, the company went from $1.75 per share in results to $3.87 per share - i.e., a 121% improvement.
  • Jamie Dimon joined the executive team of JPMorgan Chase in 2005. In that year, JPMorgan earned $8.5 billion. In 2012, the company earned $21.7 billion. The pretax, pre-provision results per share went from $4.41 to $8.62 or a gain of 95.5%.
  • In the past three years, the company has reported record earnings in each year. It has emerged as the biggest money making bank in the world following the 4 Chinese monoliths. Plus, it is the biggest bank in America and it makes more money than all but five companies in any industry in this country.
  • From the end of 2005 to last Friday, the stock price has risen by 19.9%. In this same period the Keefe Bruyette banking Index has fallen by 39.5%. JPMorgan has outperformed its peers by approximately 60% over this timeframe.

-- Written by Shanthi Bharatwaj New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
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