There's a Storm Coming & Jamie Dimon doesn't Give a #!*?

Jamie Dimon had this to say June 1st speaking at an investment conference:

The comment was a big "to do".  News media covered it, podcasts talked about, and if your like me, your father-in-law asked about it because he's addicted to CNBC. 

Dimon's words pack a punch.  JP Morgan is the largest bank in the U.S. by market cap at $317 billion.  Add the second and third largest banks together (Wells Fargo - $147bn, Morgan Stanley - $130bn) and they're still not as big as JP Morgan.

His track record is outstanding.  When the financial world was melting down in 2008 his firm had the financial strength (err, solvency?) to scoop Bear Sterns and Washington Mutual from the garbage bin and patch them back together.  (Sidebar: the US government may have had a small hand in these acquisitions but the point remains!)

Under his leadership, the index hasn't stood a chance. His companies have outperformed the S&P 500 dating back to the 2000 while most of his banking peers can't say the same. (Related: I love he throws Bank One on this slide.  I'm sure compliance had no issues with it!)

The old guy in Omaha (sir Warren) even gave him a shoutout in one of his annual letters saying:

"One CEO who always stresses the price/value factor in (stock) repurchase decisions is Jamie Dimon at J.P. Morgan; I recommend that you read his annual letter." - Warren Buffett 

Ok, so the table is set.  This guy Jamie Dimon matters.

JP Morgan reported their second quarter earnings today so we go the chance hear from Dimon again.  He was asked this question by sell-side analyst Mike Mayo*: 

"Jamie, could you help me reconcile your words with your actions? You said a hurricane is on the horizon. But today, you're holding firm with your $77 billion expense guidance for 2022. I mean, it's like you're acting like there's sunny skies ahead. You're out buying kayak, surfboards, wave runners just before the storm. So is it tough times or not?"

Dimon started responding before Mayo could even finish the question.  The entire response is below:

It's a great lesson.  To paraphrase him, he's basically saying "even if shit hits the fan, things will eventually get better because that's always what happens."  Let the competitors wax poetic on strategy shifts, we're going to keep playing our game.

Imagine if Steph Curry has a 0 of 6 quarter shooting 3s.  The Warriors game plan doesn't change. You want to put yourself in the highest probability position to win and that means putting the ball in Steph's hands. 

Investing is a similar discipline.  You can debate inflation, the Fed, euro/dollar parity (sidebar: I do all this stuff) until you're blue in the face but you should keep in mind much of it's a giant distraction.  If you've plotted the right course ahead of time, stay on that course.

And though Jamie Dimon is more often viewed as a figurehead/capital allocator than investor because of his position in the big office on Park Avenue, make no mistake about it, he's making investment decisions in size and scale with the best of 'em! 

Even if there's a storm coming, Jamie Dimon doesn't give a #!?*.

*s/o the Quartr app (great app to listen to conference calls!)