The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
It is quite obvious now that we have so called investors here with zilch understanding of the insurance business. Allianz took an absolute caning a couple of years ago because of the German floods I wonder if anyone required the CEO to resign?
It's no good getting worked up in a froth just because the business is having to pay out. The right thing for any insurance company to do when conditions are rough is to look after the customers first, that's what they are there for and customers who are taken care of when things are tough will have longer memories than some "investors" who come and go. Insurance companies who avoid paying out do not last very long.
All businesses have their ups and downs, certainly when I was in business a severe "down" happened three times in the space of 30 years but overall the good times exceeded the bad in those years. Many "investors" don't properly understand such phenomena with the result that they get into a panic and sell when they really shouldn't. If a business is delivering a good product with integrity then unless there is a fundamental problem caused by innovation or inability to adapt then there will be no problem in the medium term. L & G has been in business for over 180 years, I conclude that they must be delivering good products with integity.
"Corrections" as people insist on calling them are invariably caused by the market recognising external conditions which have existed for sometime but have so far not caused an adjustment in the value of the business. There are no such conditions in the businesses which RIO operates at present and therefore no "correction" to £48 or similar will occur. In fact it has already come and gone as the market price of iron ore fell to less than $90 a few months ago but has since climbed back up by around 30%. At that point RIO shares could be had for around £46 which is when I bought a substantial tranch because it was common sense to do so.
The two most highly desired man made items are cars and houses wherever you are in the world because one gives you security and the other gives you power. Even in the ghastly depths of the inflation busting late 70's, early 80's when at one point my mortgage interest was 15%, people still wanted to buy these things and did so with gusto ("because next year they will be more expensive"). I contend that if anyone believes that house buying will dramatically slow down just because inerest rates may rise to the paltry figure of 5% then I say that history has already proved them wrong. The housebuilders simply have to manage some inflation in their material costs which they already do anyway or they would not be managers.
Hera what you say Barchid but if there were a remote chance of anything being amiss, which I very much doubt, there would have been some kind of action by the FCA by now.
Got a new quote today and was pleasently surprised but we are good drivers and only had one "accident" in the past 30 years.
CCC. Now you must have gone into the "budget stores" to be able to write what you wrote below and I am not afraid to write that I do Tesco as well as Lidl and Aldi but your reference to "quality" is very debatable. Lidl in particular rarely puts a foot wrong and stocks a lot of British made goods e.g. extra mature cheddar made in Somerset for £7.69/kg vs Tesco £9.55/kg
Quite right skier1, only the board members and wily late night shoppers get anything worthwhile out of Tesco, everyone else gets suckered.
Seems like some people are getting worked up over a storm in a tea cup:- "Despite volatile markets, the group's annuity portfolio has not experienced any difficulty in meeting collateral calls and we have not been forced sellers of gilts or bonds." says Lgen management a few weeks ago.
Well no Doug it is not "nonsense" either, besides failimg to prevent one from catching Covid, the vaccine is now known to be highly suspect with plenty of folk having bad experiences. Andrew Brigden has a huge reputation for getting at the truth and his "anti-vaxxer" speech in the House will not have been done without thorough checking.
Yes Banbury I know they believed it due to the media and Boris's "science" team causing mass hysteria - one of my old friends still won't go out to the shops and has it all delivered, what a shame eh? No I was not very lucky, my Mrs (not jabbed) also had it for a few days but soon got over, same for my son. Have you still not noticed that there is hardly anything in the media anymore and even the Chinese have got so fed up with it that their nutty government has had to back off. It's a Corona virus, they have been about for thousands of years and often mutate as we all now know but rarely cause death unless you are weakened when you can get pneumonia (breathing problems) which my old Dad died of a few years ago.