Better Buy: Wells Fargo vs. Toronto-Dominion Bank
Despite the media hype about how upstart digitally native finance companies are eating into the traditional banking business, the corner bank is still a vital business model. However, with concerns that rising rates could push the economy into a recession, investors should be careful about which banks they own. That's why conservative investors will likely be much happier owning Toronto-Dominion Bank (NYSE: TD) than Wells Fargo (NYSE: WFC).
Wells Fargo was founded in 1852. The 170-year-old bank has gone through various shifts and transformations over its life -- it started out serving miners in the California gold rush -- but at its core Wells Fargo has focused on being a simple bank. That means providing customers with savings and checking accounts, making mortgage loans, and operating in a fairly conservative manner. For a very long time, Wells Fargo was considered a gold-standard name in the banking industry, even becoming a major investment for Warren Buffett's Berkshire Hathaway.
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Source Fool.com
