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What 40% Market Share Means for Wells Fargo

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

Last week, Wells Fargo made the news as Bloomberg reported on a January rah-rah session Wells had for some of its loan officers. There was talk of "40% or BUST!," meaning 40% market share in U.S. home lending. That's a cartoonishly high figure, but Wells got awfully close and broke records in the first quarter, capturing a 34% share.

The fact that Wells is even talking about 40% is quite amazing and a testament to its strength while many of its competitors are retrenching. And while there's risk in ramping up (especially if lending standards are lowered), what's heartening is that Wells is sticking to its knitting. This also stands in contrast to its competitors. Anand explains in the following video.

With so many of the big finance firms getting bad press these days, you may be inclined to stay away from the sector entirely, but that could be a mistake. In fact, some of the best opportunities over the next few years can be found there, including one small, under-the-radar bank. It’s been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading

Anand Chokkavelu owns shares of Bank of America, Citigroup, Wells Fargo, and JPMorgan Chase. He also owns long-dated options on Bank of America and warrants on Citigroup, Wells Fargo, and JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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