Five to four field: Place your bets now
The Black Horse is a bit of a dark horse.
Lloyds Bank if getting into the housing business as a ‘large private landlord’. The main reason for this is that interest rates are so low. In other words, it can’t make enough money from doing what it does best: lending money to me and you, because interest rates are so low.
Now one of world’s greatest investors, Warren Buffet, also known as the Sage Of Omaha has an adage which says you should only invest in businesses you understand. Or as my granny would have it: stick to the knitting.
But, of course diversification can be very successful: look at Marks and Spencer foray into food retailing in the 1970s, now its most profitable division.
But where will all this end? Will we be going to our Jaguar dealer for pet food or how about Boots for our footwear. And how about Amazon for boats. (That’s enough bad puns now Tom, we’ve got the idea.)
There is an old saying what says that when you see see a bandwagon, you’re too late. Already the big buzz in housing are well into Private Rented Sector.
As the old Campstown races song goes goes:
Well, I came down there with my hat caved in Oh I’ll go back home with my pocket full of tin oh doo-dah day Goin’ to run all night, goin’ to run all day I’ll bet my money on the bobtail nag, somebody bet on the bay.
My money is on the bobtail nag.
Have a good weekend