Discover Financial Services (NYSE:DFS)

"We were initially drawn to Discover by its price (as of this writing, less than 8 times earnings) as well as our positive experience owning other card networks. As we continued learning about the company, we came to appreciate more fully the
competitive advantages it enjoys as both a card issuer and card network, particularly its exemption from
the regulatory restrictions that constrain its competitors. Although it generates the vast majority of its
revenues from a business that is somewhat commodity-like in nature – i.e., lending – Discover distinguishes
itself by focusing on a particular customer set that might otherwise have difficulty obtaining unsecured
loans (the prime revolver segment) and by providing that population with distinctive customer service.
These factors combine to help Discover generate excellent returns that consistently exceed those of other
banks by a significant margin. We trust that will continue, especially as they seem to have excellent risk
controls. But, as you know, as between faith and fact, we lean heavily toward the latter." Marshfield Associates July 2023 commentary;

The company bought a 3% position in 2Q 2023

Moves into different loan types, seemingly better managed than in the past, and low charge off rates.