Q: After reading Peter’s book (Join the Rich Club), I'm looking to invest in the banks for the long term e.g. 10 years for my kids, myself and my wife. Which bank do you see has the best value/dividends for the long term? I am considering CBA.
A: The Commonwealth Bank (CBA) is Australia’s best bank – best leadership, number 1 or number 2 in most markets, best technology, best capitalised, strongest balance sheet. It is also the most expensive in a relative sense and trades at a premium to its major bank peers.
For value, I like Westpac (WBC) – but it is out of favour with the market.