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Bank Stocks Shunned by Money Managers Turned Off by Derivatives

“Above all stick with what you know,” Warren Buffett cautioned investors in a 1974 Forbes magazine interview. “Don’t get too fancy.”

Banks, in the view of some of today’s best-performing money managers, are too fancy -- their businesses and finances too complicated to understand even as regulators have tried to make them more transparent. Investors owning few if any of the stocks in the group include Clyde McGregor, who runs Oakmark Equity and Income Fund, Delafield Fund’s John Delafield and Donald Yacktman of Yacktman Focused Fund.