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I said earlier and absolutely it’s their money, their choice Aus, plus acknowleged that as I’ve watched the downward drift like a rabbit in headlights I’m hardly well placed to comment.
Throwing the ‘leave’ reminder in is a bit of grenade, haven’t forgotten the ‘boris can do no wrong’ either. Probably best I don’t follow that one up (unless someone else wants to start the fight).
You presumably missed fleccy recently linking to a picture of himself so I don’t think he feels a great need to stay anonymous.
Whilst not something I would get close to doing , a reminder that there’s generally a human with feelings behind the keyboard, and whilst may seem like an a£se about somethings, we shouldn’t judge based on our views and values as may be a right good guy in many other ways.
Great strategy of pouring dividends back into the same business when right now it’s going to take over 8 years of foregoing that cash to recover total shareholder value, to the equivalent of average paid for holdings??! That’s really worked out as the best thing to do with spare cash hasn’t it.
And that of course is taking no account of inflation for the period the shares were originally purchased and the years to recover.
In terms of being a ‘no brainer’ to reinvest at these levels, that’s exactly the thinking that has has allowed the drift all the way from £3; an emotionally driven response based on loss aversion and a refusal to accept some wrong decisions have been made.
Yes, if the SP rises significantly (which I very much hope) it may work out years from now but there aren’t any real signs of that and history suggests it will continue to disappoint.
Yes, divi reinvest can be a good strategy that delivers compound increasing value over time…but not if you choose to reinvest in shares that the a#se keeps dropping out of.
Best thing for most of us now would be a big bid (which doesn’t look too likely unfortunately). Thinking otherwise is just getting stuck on the ‘I will be proved right’ hang up.
If you’re looking to build a bigger investment pot there’s some sense in using your dividends if you’re not going to use the cash.
I think what some of us struggle with fleccy is what has sounded like a stubborn ‘never sell’ mindset, as ultimately money should be put to good use, and also what up to now seemed to be a one-track ‘more of the same’ strategy, creating a vulnerability to a single share. You’ve now indicated that you spread your risk which makes sense and as someone who has demonstrated an analytical approach previously, you will have worked out based on your average v current price, that it’s going to take some time for you to recover your total BT investments…unless the price shifts up considerably of course.
Either way, it’s your money of and based on the fact I still own too many BT shares, I can’t claim to be any better at this game.
The most bizzarre thing for me about the hold (forever) and reinvest strategy is that thinking seems to be more shares = more regular return, with the real driver being to fulfil a desire for greater security. The reality is it represents the opposite, i.e. increased risk through less resilience.
I too would like the option of enjoy some and spread any re-invest mix that a pay-out would offer.
I guess the real question is are the prices we’re currently seeing the ‘new normal’?
And in response to Coronations original post (that I thought I saw a few days ago?), that basically concludes with it’s a win-win as lower SP means more shares when re-investing divi; as a reality check, over the last 12 months the share value has reduced by the equivalent of over 7 years of current divi pay-out.
It can be an expensive mistake to assume that as the SP was once higher it’s sure to go up again!
I absolutely agree Larry. Much of the time it’s like BT feel a far greater accountability to the government than their shareholders and I wonder if some senior people within the business consider it in their best personal interests not to unduly challenge.
And there was me thinking success in business is about maximising revenue, minimising costs and managing cash.
I’m guessing we won’t ever be able to change the speed of light but not so sure Scotty’s catch phrase of ‘ye cannee change the laws of physics’ will hold up (so expect ongoing refresh at glass end and very occasional glass type).
I switched my business from EE to Tesco (O2) recently. I appreciate that’s borderline heresy and tesco mobile isn’t sexy but I managed to deal with that by reminding myself of the c£20 a month difference per line.
To be honest I don’t know how they do it at that price but I can understand the inertia towards telecom shares as they’re in danger of crashing the market.
Absolutely Expat!
If these guys were managing a prem football club they’d be long gone.
Yes of course indications of a positive future add shareholder value fleccy. But rather than all your ‘could it be/conspiracy theories’ that suit to the way you want to present things better than reality, could it be that right now the market isn’t confident of a positive long term future…and doesn’t that reflect a failing of the CEO and the board to convince them. You’re doing exactly what Expat refers to - giving them a pass.
As for putting hopes on IOT and AI, that’s hardly new news and BT have hardly shown themselves able to reap value from it, other than commodity connectivity.
Oh! So having repeatedly proclaimed BT as the most solid of shares with a golden future they’re now a business with massive challenges and we shouldn’t be expecting the CEO to be able to maintain shareholder value, let alone improve it.
As Jansen’s role was actually about securing the long term future of the company rather than shareholder value presumably all those people getting excited about possible takeover as a means to recover their investment or even make a return on it are somewhat misguided.
But it’s all good because fibre will be here longer than copper and we’ll all be milking that when we’re of a triple digit age, rather than those pesky forward thinking aggressive innovation companies with their new applications who will really make a return on it.
So actually Jansen is basically saying not my fault.
So what’s being done about that, other than the CEO leaving having dealt him self a big wedge despite the poor performance of the business and saying don’t pin the SP decline on me before he leaves?