Macquarie Group Ltd (ASX: MQG) is Australia's biggest and best investment bank.
Although I wouldn't be surprised to see its share price go higher in the short term, there are a few concerns I cannot stomach at today's prices.
Macquarie share price
As can be seen above, Macquarie Group shares have proven to be an excellent investment… if you get the timing right.
It pains me to say 'you need to get the timing right'. But there are two reasons why I won't be buying Macquarie shares today.
1. Cyclicality
No surprises here but Macquarie's business is cyclical. While the bank has made significant changes to its business since the global financial crisis of 2008, its profits are highly sensitive to movements in broader financial markets.
That means we may get a chance to buy shares in Macquarie at a more compelling valuation, in time. For the patient investor, waiting a few years to buy shares in a quality company is a no-brainer.
2. Black box.
Macquarie has a diversified business, in terms of its geographical reach and its operations. What's more, some of its businesses are not as transparent as others. Meaning, it can be difficult to get a decent read on each part of the business and determine how it is performing.
That's not always a bad thing. But when you do not have certainty in your research and analysis you should demand a wider margin for error before you invest.
That's another reason I'm waiting for a better entry point.
Foolish Takeaway
At today's prices, Macquarie's shares are a little expensive for my liking and there appear to be more reasons to not buy today. Remember, patience won't lose us money.
