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Thats rubbish tbh, Buffet always bought unloved stocks that had good economical cases. This is investing not trading.
I bought Shell at 900p its now over 2500p, Same with Tullow Oil at 8p. MCRO was 200p sold for 450p. Polymetal was 50p could have got out 350p. sold at 230p.
Grass is always greener on another stock when yours is down but in reality we all need oil and we all need houses. PSN has 80k plots which is 10 years of houses in the bank. They make their own bricks too which adds to margins. Reality in house building is that they all do well or none of them do because houses are a kind of commodity in demand or not. Demand is currently coiling up for no other reason than 1.5m immigrants in 2 years. In 2-3 years this stock will be over 2000p easily and dividend 2x where it currently is. The UK has one more boom left in it before we encounter larger problems, lets hope we all hold our nerve and cash out at the top of the next housing boom.
About £20k worth..😁😁😁
Seen_it_done_it. How many shares do you tend to trade with in any one transaction?
Every little helps, also PSN has become a trading share of late. It keeps on going up and down more than once every day. Can make a little beer money if you time it right, lol.
Was that trade even worth it as even if you bought and sold 5000 shares it would be about £620 profit .
Topped up late yesterday at 1300.5, and sold at 1315.75 this morning. Will wait to buy back them again if it drops to below 1300.
Oops sorry bargain i web 1283.5005
Lol 12.83.505 love it
Nope. Bugger.
Will it bounce......??
Important remember P[SN deals in land and they don't make it any more
Good to hear that you are still in profit. Let's hope that this is the bottom, and will soon start to climb its way back to over £14 again. Good luck and have a great day mate.
Just to clarify. My post is NOT "advice". Which is a dangerous word :)
Balkwill66 - Christofer's reply is perfectly valid. This post is to offer some alternative points of view. Neither post is right nor wrong.
Five points:
1. The key question is what has changed in the company from when you bought it?
I bought a company 18 months ago where the stated strategy wasnt' what was executed and I didn't understand the numbers any more. So I sold for a 20% loss*.
I'm currently sat on a -10% loss* on an investment where nothing has changed since I bought it - it's just that the market doesn't like it. I can be patient (see number 5).
My BDEV investment was -16%* last year and now sits at +30% against my base investment. Things change (see number 5).
2. You say you're £3k down, but does that include the dividends you've received. At the end of last year I did an exercise in looking at my investment positions dividend reinvested/taken. It's good to understand your actual position.
3. Is the amount you're down "material" to you? If you're likely to have a need for the money in the near term then you're better off selling than waiting it out.
4. Can you clearly see a better alternative for investing your money?
5. Which brings me on to Charlie Munger (Warren Buffet's right hand man) - “The big money is not in the buying and selling,” he said, “but in the waiting.”
Remember that, if you sell, you don't have to sell all of your holding :)
Best wishes.
* For those of you thinking - "Why should I listen to someone with this track record of loss?!" - I just want to say that I win more than I lose. I'm also a great believer in Warren Buffet's "hamburger" principle whilst being paid to wait for stuff to come good.
Been getting these back from 1317 yesterday and still have powder dry as still a bit rocky but what a bargain holding for the long term PSN still made a profit I would like the div to be cut to 20 p to preserve cash as this will be good in 6-9 months time , land bank good a people need a place to rest their head and a profit is a profit this can only get better looki9ng to get 20,000 which will be my limit as other shares in my portfolio. happy with my holding and still in profit with PSN. :-)
BEEN
...I have 'bought' some back..
Hey denby, do you still have your 1299 buying order? Oh, and if you don't mind me asking, how many PSN shares have you bought now?
I have some back at 1307.75 this morning. Seem a bit early, should have waited a bit longer, lol. 😁😁
Got a bargain 1302 what a late Christmas present
Meconopsis, now I understand.
The note was generated by A.I., which was instructed to include moat status.
A human would not have included the phrase, “the no-moat homebuilder”. Given the definition of moat, a redundant phase in the context of home builders. Only needs a minor modification to the instruction set. I’m guessing next year’s note on Persimmon will not mention moat status.
In 1978 I was writing machine code to program Motorola 6802 microprocessors. We’ve come a long way!
Apologies londoner7 - text from the site below.
Very few UK companies have a “moat” and none of the house builders. Even Apple was only classified as having a narrow moat - although I think that’s now been revised.
The text…
The Morningstar Economic Moat Rating represents a company’s competitive advantage. An economic moat helps a company fend off competition and earn high returns on capital for many years to come.
Morningstar identified five sources that build and widen a moat:
1. Switching costs are obstacles that keep customers from changing between products, like from one company’s product to a competitor’s.
2. Network effects occur when the value of a good or service increases for both new and existing users as more people use it.
3. Intangible assets are things such as patents, government licenses, and brand identity that keep a company ahead and competitors at bay.
4. A company with a cost advantage can produce goods or services at a lower cost, allowing it to undercut its competitors or achieve higher profitability.
5. Efficient scale benefits companies operating in a market that only supports one or a few competitors, limiting rivalry.
If we can expect a company’s competitive advantage to last more than 20 years, we consider it as having a wide moat. If it can fend off rivals for 10 years, it has a narrow moat. If a competitive advantage doesn’t exist or may prove fleeting, there’s no moat.
When searching for undervalued companies, those with narrow or wide economic moats often offer attractive return potential. The Morningstar Economic Moat Rating can help you identify those companies to provide superior long-term returns.
Things aren’t looking great currently, I believe a rate drop could give this a boost , can’t think of anything else now , I think lots of us were expecting something sweet in the budget which didn’t happen. I was talking to a fund manager in the city who said , it’s poor practice to sit on something just because you believe it will recover , put your money to work elsewhere, good advice in my opinion, sadly , I haven’t followed my own rules or instinct in the last year , I could of made so much money had I sold up and moved on while things improved early last year and again this , stupidly I convinced myself this was skyrocket with a decent budget for builders ….now look …
Meconopsis, thanks for clarifying their use of the term.
I don't have access to the site. Can I assume that no home builder has a moat? I wondered if Vistry's partnership model gave them a moat, but minimum 10 years (narrow moat) sounds a stretch.
Morningstar’s most definitions - https://www.morningstar.com/stocks/morningstar-economic-moat-rating-3
Their definitions require a company to be able to fend off competitors for 10 years to have a moat.
The Morningstar note describes Persimmon as a “no-moat homebuilder”.
If Persimmon is a no-moat homebuilder, is the same true for Bellway, Barratt Developments and Taylor Wimpy, i.e. all the traditional house builders?
If so, is there a homebuilder that does have a moat?