Is Capital One Financial a Millionaire Maker?

Group 1 - Capital One Financial's stock has increased over 2,600% since its IPO in late 1994, indicating its potential as a significant long-term investment [1] - The company operates primarily online with a limited branch network, focusing heavily on credit cards and loans, generating $961 million in income from credit-card operations in Q1 2024, surpassing its consumer banking and investment banking income combined [2] - Capital One's business model involves lending to higher-risk borrowers, which can be profitable during economic upturns but poses significant risks during downturns, leading to potential swift stock drawdowns [5] Group 2 - The stock's performance has been buoyed by a bullish market, with the S&P 500 near all-time highs, but this may not reflect the company's stability during economic uncertainty [4] - The dividend yield is relatively low at 1.6%, and the company has a history of cutting dividends during tough economic periods, indicating inherent business risks [5] - While Capital One has shown long-term rewards, it requires a high risk tolerance from investors, and current stock prices are about 18% below all-time highs, suggesting that waiting for a more favorable buying opportunity may be prudent [7]