On Tuesday, SMIF heard from Gleb about adding low-cost brokerage firm Charles Schwab to the financial sector holdings. Gleb believes that in a world of ever-compressed fees, Charles Schwab is best posed to succeed. Unlike competitors Ameritrade and E-Trade, Schwab is diversified away from pure trading. In fact, trading commission only accounts for 11% of Schwab’s revenue. The bulk of the firm’s revenue is derived from Asset Management fees and Net Interest. The firm has fared remarkably well, with a Net Income CAGR of 20.8%. This is in stark contrast to the stagnant growth of its competitors. Gleb proposed to buy 500 shares of Charles Schwab. The motion passed unanimously.