The Banking & Financials sector constituted the major chunk of Warren Buffett's portfolio as on June 2018, also, this sector has emerged as India’s biggest Wealth Creating sector over 2013-18 dethroning Consumer/Retail and was also an outperformer over 2012-2017, according to the 23rd Annual Wealth Creation Study by Motilal Oswal.
Quoting Warren Buffett:-
“If you are going to function in society, as an individual, a mom-and-pop business, or a billion-dollar corporation, you need one or more of the following: a bank account, a business loan, a car loan, or a mortgage and with every bank account, business loan, car loan or mortgage, comes fees charged by the bank for the myriad services it provides.”
We analyzed the Banking Sector and used one company to illustrate our framework; which was presented at Best Ideas 2019 hosted by MOI Global and IIC 2018, also, the video of Best Ideas 2019 is attached here.
Investors may use the aforesaid framework in evaluating the Banking Sector and may apply the thought process to look at other Banks also.
Understanding the Banking Sector by Ashish Kila (CIO, Perfect Research) at Best Ideas 2019 (MOI Global)To download the Presentation- Please visit this link
The author, Mr. Ashish Kila would like to thank his entire team at Perfect Research for their extensive help in the preparation of the above presentation, especially our Chairman and his father Mr. R.A. Kila for all the guidance and support.
Mr. Abhinav Mansinghka for bringing the idea to our notice and being our sounding board for this idea
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