For all those who cannot immediately classify the name: State Street $STT (+0.01%) is one of the largest asset managers in the world, manages around USD 4 trillion in assets and is the issuer of the well-known SPD ETFs (pronounced SPIDER) - including probably the most famous ETF in the world: SPDR S&P 500 ETF (SPY).
Why buy now?
Dividend: approx. 3.5%, solid distribution history.
Valuation: P/E ratio currently below the industry average - no hype, but substance.
Business model: Earns from fees for the management of ETFs and funds - i.e. they profit from the steady flow of capital into passive investments, regardless of whether there is a bull or bear market.
Stability: Has been on the market for over 200 years, surviving every financial crisis and still standing.
To me, this is an investment in the infrastructure of the financial world - like a toll road operator on Wall Street. The SPDR ETFs keep rolling, and State Street collects the toll. I plan to hold the position long term plus add to ongoing,
and benefit from dividends + price appreciation."
