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Buying Shares Now? Good or Bad?

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hi, i'm thinking of investing around £500-1000 in shares, i've spoken to a few people, some say it's a good time to buy, some say it's the worst time to buy. i'm only looking to buy shares in RBS or HBOS. RBS is just over 10p at the moment, the government won't let it collapse, am i right in thinking if the government take over RBS the share price will go to 0?

would you invest now?

to be honest i'm seeing it as "lose a little or gain a lot"

Comments

  • zedyy
    zedyy Posts: 149 Forumite
    zetec-ss wrote: »
    hi, i'm thinking of investing around £500-1000 in shares, i've spoken to a few people, some say it's a good time to buy, some say it's the worst time to buy. i'm only looking to buy shares in RBS or HBOS. RBS is just over 10p at the moment, the government won't let it collapse, am i right in thinking if the government take over RBS the share price will go to 0?

    would you invest now?

    to be honest i'm seeing it as "lose a little or gain a lot"

    Personally I wouldnt invest in RBS as it has virtually been nationalized. The only return you would see is in years, assuming it ever recovers to the point it has recouped its losses.
  • zetec-ss
    zetec-ss Posts: 12 Forumite
    zedyy wrote: »
    Personally I wouldnt invest in RBS as it has virtually been nationalized. The only return you would see is in years, assuming it ever recovers to the point it has recouped its losses.
    yes, i'm not looking for a quick return, i'm looking to play the long game. i don't want to put my money in and then loose it all. can this happen? what scenario would this be?
  • Phaelok
    Phaelok Posts: 127 Forumite
    zedyy wrote: »
    Personally I wouldnt invest in RBS as it has virtually been nationalized. The only return you would see is in years, assuming it ever recovers to the point it has recouped its losses.


    I bought RBS shares at the end of last week when they were 20p a share. Yes I have lost a bit (invested about £450) but I see this as a long term investment. It is not unrealistic to think that maybe in a few years time that the share price could be around 60p, in which case the investment would treble. The share price of RBS, assuming it dosent become completely nationalised, will become more considerable once it repays what it owes to the government.

    Is it a gamble? Absolutely - however it is money that I don't require at the moment and one which I am prepared to take a 'punt' on. Only invest money in banks if your prepared to see it as a long term investment, not earning a quick buck overnight =)
  • zetec-ss
    zetec-ss Posts: 12 Forumite
    Phaelok wrote: »
    I bought RBS shares at the end of last week when they were 20p a share. Yes I have lost a bit (invested about £450) but I see this as a long term investment. It is not unrealistic to think that maybe in a few years time that the share price could be around 60p, in which case the investment would treble. The share price of RBS, assuming it dosent become completely nationalised, will become more considerable once it repays what it owes to the government.

    Is it a gamble? Absolutely - however it is money that I don't require at the moment and one which I am prepared to take a 'punt' on. Only invest money in banks if your prepared to see it as a long term investment, not earning a quick buck overnight =)
    this is exactly how i am thinking at the moment, but imagine it does get nationalized, what will happen to your/my £500?
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    zetec-ss wrote: »
    this is exactly how i am thinking at the moment, but imagine it does get nationalized, what will happen to your/my £500?

    You will lose the £500 in all probability.

    Northern Rock collapsed yonks ago, and no one has yet decided whether any compensation will be paid or not. They will be lucky if it is.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • Phaelok
    Phaelok Posts: 127 Forumite
    zetec-ss wrote: »
    this is exactly how i am thinking at the moment, but imagine it does get nationalized, what will happen to your/my £500?

    Effectively our shares will be worthless. However I cannot see RBS becoming fully nationalised (in my opinion) as the bank would not pump billions of pounds into it knowing it was then going to completely collapse. Once the bank repays what is owed to the government (which some see as 3-4 yrs if not slightly longer) then its not unrealistic to think that the share price could return a sensible investment. I just see it as a long term investment thats all, and prepared to take a gamble in the hope that the share price could treble in a few years time.
  • tradetime
    tradetime Posts: 3,200 Forumite
    zetec-ss wrote: »
    hi, i'm thinking of investing around £500-1000 in shares, i've spoken to a few people, some say it's a good time to buy, some say it's the worst time to buy. i'm only looking to buy shares in RBS or HBOS. RBS is just over 10p at the moment, the government won't let it collapse, am i right in thinking if the government take over RBS the share price will go to 0?

    would you invest now?

    to be honest i'm seeing it as "lose a little or gain a lot"
    Well I think whatever your view, it can't be the "worst time to buy" In recent history that would have been early to middle of 2007
    I personally think now is a good time for investors to be buying into the market, but I'd be doing it slowly and cautiously, I do think there is a further leg down to come.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • zedyy
    zedyy Posts: 149 Forumite
    Phaelok wrote: »
    I bought RBS shares at the end of last week when they were 20p a share. Yes I have lost a bit (invested about £450) but I see this as a long term investment. It is not unrealistic to think that maybe in a few years time that the share price could be around 60p, in which case the investment would treble. The share price of RBS, assuming it dosent become completely nationalised, will become more considerable once it repays what it owes to the government.

    Is it a gamble? Absolutely - however it is money that I don't require at the moment and one which I am prepared to take a 'punt' on. Only invest money in banks if your prepared to see it as a long term investment, not earning a quick buck overnight =)

    Wise words....

    There's every possibility that it could pick up in a few years but personally I see this type of investment like tossing a coin. I don't have the 'play' money for this sort of a gamble and even if I did I wouldn't invest without knowing the essentials about RBS and its strategy to pulling itself out of this mess.

    Its good that people are confident and taking a risk on something that could one day give fruitful returns, especially when share prices are cheap as chips.
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