×
Pro Analysis

Paul Meeks: Why this tech investor is buying a bank

Take money out of bank, stow away
Three Lions | Getty Images

Blasphemous! Why is a tech investor selling Amazon to buy a commercial bank, particularly one that most folks don't know?

Well, I've done just that in my CNBC PRO Platinum Portfolio.

This is no indictment of AMZN. My confidence in the company's driver, Amazon Web Services, only has grown as the service has maintained its huge lead, and perhaps even has lengthened it, in cloud computing, which is my tech focus. However, that stock had risen by more than 40 percent since I first bought it and had swelled to more than a third of my four-stock (by mandate) portfolio. I bet that I miss some further upside in AMZN, but I'm redeploying capital for hopefully a larger gain in Signature Bank. Therefore, AMZN was sold at $769 to make way for SBNY at $119.

According to a Forbes survey, New York City–based SBNY has been among America's best (i.e., top 10) commercial banks for six consecutive years; and it was founded in only 2001.