RBS shares...

IT_nerd

I'm looking for a long term investment and I'm looking at just putting about £1750 into shares. I actually accepted it as gone yesterday, but now since I'll be getting it back. I want to risk it again since i've gone through the traumer already.

I feel now is a good time since the market is crashing all over the place.
Bad for people who have to provide profits by the end of the year, great for people that don't mind waiting it out.
I'm looking at RBS shares at the moment. I looked at its stock history and it seems the last time it was like that was in 1995ish.
Then by 2002 is peaked, then by 2008 its back to where it started.

The risk I have is the bank goes under.
I feel that if the bank stays functioning then I'm very likely to get a return.

Anyone got some guidence? And really obvious reason I shouldn't buy if i'm ok with waiting 8 years?

IT_nerd

bump ?

IT_nerd

bump ?

fatpig_2

no, don't do it

lectureral

Depends how long you are prepared to leave your money there - right now they are at £1.10 - up 20% today (about half what I paid for them 1 month ago though!). With the bailout RBS will survive and if you can put the money in and forget about it for 3-5 years then I think you will see a nice return overall. Short term you might keep an eye on the price - if there are any more shocks you might be able to buy them again for less than £1.00 I think.

Bromley86

Unless you didn't get a big enough thrill from almost losing your money last time. If that's the case, do it!

Even under normal conditions, the stock market is for those that understand it. i.e. not my MIL who kept holding onto those BT shares to get that extra pound (they've fallen from a high a long while back of something like £12 to £1.50) and has a bunch of Standard Chartered shares from retirement.

lectureral

... of course if you really want a gamble you could try Woolworths shares - currently 3p - in 3 years will either be 0 or 10p+ (even odds) is my guess ...

Bromley86

So I could buy 30 shares instead of some pick'n'mix? They should offer their shares in store - if nothing else, I'd lose weight.

cheerfulcat

IT_nerd wrote: »

I'm looking at RBS shares at the moment. I looked at its stock history and it seems the last time it was like that was in 1995ish.
Then by 2002 is peaked, then by 2008 its back to where it started.

Be careful when looking at share price history - there has been at least one share split since 1995!

The risk I have is the bank goes under.
I feel that if the bank stays functioning then I'm very likely to get a return.

Anyone got some guidence? And really obvious reason I shouldn't buy if i'm ok with waiting 8 years?

Single share investment is highly risky. If you are interested in recovery stories, you could look at a collective investment ( investment trust or unit trust ) with a value/recovery bias.

opinions4u

Bang it in a tracker fund and forget about it!

lectureral

Bromley86 wrote: »

So I could buy 30 shares instead of some pick'n'mix? They should offer their shares in store - if nothing else, I'd lose weight.

I think that is a brilliant idea - they could even give you a couple of shares with each bag.