Amid the Rubble, Eye Some Financials?
Ron Sloan is surveying the wreckage in the financial sector, and spotting some opportunities for investors.
"You just have to do your homework," the senior portfolio manager for the AIM Charter Fund advises.
"We focus on banks and companies that have good, steady deposit growth, that keeps their cost of funds down, allows them to write a higher quality of loan to begin with -- they don't have to stretch to get to that same spread -- and so, I think there are some banks that meet that criteria."
For instance? He cites Warren Buffett.
"Like the world' richest man, we've been recent buyers of some Wells Fargo," he said. "Yeah, they've got a few problems that they've announced; they're mostly in the home-equity loan business. We think it's very manageable."
Sloan also likes US Bancorp.
"People said, 'The fuddy-duddies, they weren't on top of their business the last five or six years,'" he commented. "They kind of worked in the vanguard of all the derivative stuff."
Overseas, he chooses Lloyds Bank.