Stock Market

The Stock Selection

Banking sector is the backbone of economy across the globe . The global economy has shown symptoms of good recovery as well as fair chance of growth in the recent past . If the world economy has to grow at a study pace , one of the biggest beneficiaries has to be the banking sector Warren Buffet , famous investor , in his book The Warren Buffet Way wrote- one should not invest as if he is buying a share , but as if he is buying a whole company . Per him , one should invest in

a business for which he thinks he understands the basics , and to me banking is a fairly good business to invest into

Banking is a good business as long as the bad debts of a company are less and Non Performing Assets (NPAs ) are low . With the job market back up in both the developing as well as developed nations , there would again be a consumer inclination towards investment in property and purchase of high end vehicles . With all such people in the ambit of target customers for the banks , the business for banking is all set for a rise

The business of banking is also a stable one with lesser chances of making loss as long as the loans are shelled out judiciously . Two important things while lending out a loan to consumer are :-

Willingness to repay the loan

Ability to repay

United Kingdom is a stable market and therefore the ability to repay a...