Share Buyback?19 Mar 2020 11:42
I have owned Morrison's shares since I started work there in 1972. Ken Morrison himself encouraged me to invest saying he would guide me on how to trade well. I had just started working at their 9th store in Halifax. Most were in Bradford. He was always mucking in on the shop floor and you could chat to him in the canteen.
He told me not to worry if the shares went down - he would 'protect me' without me knowing.
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He said " When our stock is down against the market for whatever reason, we usually have plenty of cash to buy back our own shares. You may not benefit immediately or directly but it means that your shares will 'own' a higher percentage of Morrison's than they did before. Dividends will be bigger as they are going to less people"
Morrison's has always been a leader in share buybacks, so I am really hoping they will use at least some of their cash to soak up some of their own shares on any future price weakness.
I have always bought more shares on lows and sold some on new highs. Not always picking the best moment but always keeping a 'core' holding that has paid for itself many times over. I can't ever see a time when I will not hold this stock.
To younger investors I would say that now, and in the weeks and months ahead. is going to be a golden opportunity to buy major UK and global stocks. Don't try and call the bottom. Drip feed your purchases, perhaps every -20%, and then be patient.
Look at historic price charts and gain confidence that a 'temporary' downturn can actually last many years, but historically always returns to the previous high.
It is not the same as doubling down on individual stocks in a steady market where they drop due to their own operations. It is the fact that they are been driven down alongside the rest of the market/s worldwide, and will most likely recover in the same way.
As an old fogey, I can tell you I am so happy to have this opportunity to buy in at these prices. Over my trading lifetime these BIG opportunities do not come along very often.
Just look back at any massive dip in the markets or individual share prices over the last 50 years and imagine buying somewhere close to the bottom and work out how much you might have made if you then held until near the next new peak.
Calling that peak is the tricky part but if you sell in the same way you bought, at every +20%, then you will still do extremely well. I have!
I'm afraid I didn't take my own advice and reserve about 40-50% cash once a new high had been reached on the FTSE-100, as I do not have as much liquidity as I usually have at these times. Big mistake!
I wish you all the very best in your trading lives and just wanted to add a bit of support for Morrison's, my darling share, and give praise to good old Ken. RIP 2017
"Pleased to meet you, S******, please don't call me Mr. Morrison. It's Ken. Now let me help you stack these tins. Remember to turn all the labels to face forward. It looks great when customers
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