Member Info for eccles04

I am amused by the way some people write about market movements as if there were som logic behind them whereas anyone who has been around for a while will have observed that such behaviours are largely bonkers. E.g., when Boris got his covid panic started, the SP of this share dropped to well below 30p at one point. Did the sellers imagine that the end of the world was being started by Boris or that Lloyds Bank was close to going out of business simply because some old people were getting killed by a disease?

Correction I see they have mentioned losses estimated at £50 m, let's hope that's correct.

No mention of the massive losses coming from the December big freeze, why not I wonder.

All insurance cos eventually recover from big hits, DLG will be no exception:- "Aviva takes £50m claims hit from December freeze after triggering spate of burst water pipes." ex DE.

Bsa, Just to say that have been messing about in the stock markets on and off for years and have no explanation for some of the things people do and say which defy logic, here is a great example:- When Boris's covid panic broke out a whole load of people sold lots of perfectly good shares such that their prices fell seriously. What difference those people imagined having a pile of cash instead of a bag of shares would make to the covid panic I have no idea. No.1 son who is still learning but thinks well decides to buy a bunch of LLoyds for around 30p "because they are so cheap Dad, it can't be right". He is of course absolutely correct and here we are nearly three years later and his little too cheap investment has made well over 60%. As Warren Buffet has often said, don't ever do what the rest of the idiots do in when rest of the market is in a panic. So we have remarks being made that builders will suffer because there is a recession - sounds right but in fact, people hardly ever stop buying new houses.

Questor can talk a load of that but nay sayers need to remember that houses are not like other economic commodities:- Most people will bust a gut to get one no matter what and everyone knows that they nearly always increase in £s over time. So well managed building businesses don't suffer as much as some others do.

"reduced shareholder value by their re-purchase actions." Ahem that is totally illogical EW, if there are less shares on the market dividends per share will increase and therefore the value of the shares will increase. How about reading some economic theory old chap.

Hi BSA, first you need to understand that these are capital transactions and therefore they would not would not account for any "profit" in the profit and loss account which only concerns revenue transactions or impairments of assets. Usually such "differences" are added to the share premium account which is not allowed to be used for dividends without special permission from the Court to whom the company would apply. Oddly enough such an action was carried out by one of my other investments last year and I received a special div as a result, woo hoo! Of course buy backs result in less shares out there to receive divs so all things being equal shareholders get a better yield or the market value increases, sometimes both woo hoo again.

As is often the case alck of sales in Nov, Dec means nothing except that folk prefer to move house after Christmas instead of before. Back in the 70's we saw some horrendous interest rates and inflation but peopel still insisted on buying houses whenever they could (I was one of those buyers) because they knew that almost any house they bought would be more expensive next year. This phenomenum is still happening because there are still not enough houses to buy in the UK. So if you sold Barratt or Persimmon back in December you were wrong as I advised at the time.

Nah, I use LSE (Jarvis) because I don't like paying a fee for nothing - they only charge when they actually do something at your request and their ISA is free too. I also like all the free info they give you.

Can't wait to see it and may decided to buy another £5k worth:- According to Investopedia, this is one of the few kinds of businesses which do well in recession situations. The yield of around 8% we have seen this year is highly acceptable too.

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.

Obviously there are quite a few "investors" who are unaware that L & G sold their general insurance business to Allianz a few years ago.

If Direct Line have taken a lot of hits, you can bet yer bottom dollar that other insurers will too.

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.

In the meantime iron ore price still "driftking" upwards I see.

"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.