You should use String s = "sagar";
because it enables string literal pooling.
What is string literal pooling? - Like any other object creation,String creation/allocation is a memory and time consuming operation. Hence whenever a string is created it will refer to the string pool for the similar object, If such a string exists then it will refer the same.
This feature is possible as strings are immutable in java. Eventually string literal pooling will enhance the performance.
String Builder are intended for manipulations with Strings like concat().