Kevin Duffy on via negativa and why most banks are uninvestable

“Via negativa” is the study of what not to do.  In life, it means avoiding addictions, distractions, bad habits, toxic relationships, jealousy, boredom, sugar, processed foods and lawyers.  In investing, it usually comes down to steering clear of crowds, leverage and businesses that are hard-to-grasp or overly dependent on government.

Coffee Can rule #18: Due to high leverage, fickle capital and exposure to bubbles, most banks are uninvestable.

~ Kevin Duffy, "Regional Bank Failures: Containable or combustible?," The Coffee Can Portfolio, June 9, 2023