rbs shares, to buy or not to buy?

sabretoothtigger

I will be holding onto them 3-4 years.

Much thanks!

Setup a regular sharebuilder account to buy RBS over the next 4 years so that way you will be taking your fathers advise but also being cautious.

If they get nationalised after 2 years then you would only lose that money spent so far instead of everything.
More likely is that you will just get an average price with an average gain or loss

Buddy195

latecomer wrote: »

I'm considering doing the same although not on the same scale.

out of interest, who do people recommend for just doing the odd share trade? Simple and quick is all I need.

Go on moneysupermarket.com there have a place where you can compare online share trading account

chopperharris

Rbs being privitised would mean the loss of 70 percent of the shares to hmg coffers and thats BILLIONS plus interest of our taxes.

HMG are the largest investor and underwriter of bad debts in rbs , they would need to pay compensation for the remainder for shareholders.

I bought thousands of shares , I can afford to lose them , seeing as how you never had the money you wont miss it anyway and the person whom is given you it wont complain if it tanks.

The country cannot afford to lose rbs , for that reason its THE SAFEST bank on the high street for depositors and shareholders alike.The other REAL nationalised banks will have to go it there own way soon , the rbs will be an extension of NSI for long after that.

As long as RBS starts buying back hmg shares then its removing the amount of overall shares out there.The price will rise on each block buy back reversing the dillution and creating rises in the price.

There will be no dividend for the forseeable future.Profits pay divis and increase share prices , without divis the price will always stay low enough for the daily dippers to make their pound of flesh and deterring the long game.

Buy them in a shares isa then forget about it for say 3 years min.It should treble in value for you at least , but the ftse will not have done the same for your money even with included divis.

If the ftse doesnt level at 4200-4400 from now till end summer then I would be worried about every share and not just rbs.I take pride in that I posted it would have hit 3400-3700 months in advance , but I also reckoned that if everything was already disclosed with rbs it would have hit the quid by end of spring.

sabretoothtigger

Nationalised means they get all the shares, in theory its a gain in practise its a trillion of potential liabilities

Masomnia

chopperharris wrote: »

Rbs being privitised would mean the loss of 70 percent of the shares to hmg coffers and thats BILLIONS plus interest of our taxes.

You could look at it that way, or could see it as a gain of the other 30% for HMG, which it could probably sell later at a profit.

HMG are the largest investor and underwriter of bad debts in rbs , they would need to pay compensation for the remainder for shareholders.

It's unlikely they'll pay compensation for B & B and Northern Rock, so there's no obligation to do it for RBS either.

The country cannot afford to lose rbs , for that reason its THE SAFEST bank on the high street for depositors and shareholders alike.The other REAL nationalised banks will have to go it there own way soon , the rbs will be an extension of NSI for long after that.

The reason it's safe is because nationalization (you losing your holding) is possible; not that it won't collapse. It's the safest bank for depositers, but not necessarilly for shareholders, there's a big difference.

As long as RBS starts buying back hmg shares then its removing the amount of overall shares out there.The price will rise on each block buy back reversing the dillution and creating rises in the price.

True, but you're talking about billions coming out of profits, no dividend, recovery way off in the future. Lack of profits means the price will remain low for years to come.

without divis the price will always stay low enough for the daily dippers to make their pound of flesh and deterring the long game.

And this will only prohibit recovery. Few are in it for the long haul. Large institutional investors have dumped the shares becuase they are too risky. The majority, I should imagine, are just in it for a quick profit.

I'm playing devil's advocate here a little, I accept. I just think it's important for people to know that just because the price is low it doesn't mean it's a dead cert to make a profit.

The same rules as always with investing should be applied; only risk money you can afford to lose, and don't get greedy.

srg751

ive been advised to buy RBS preferred shares, what does "preferred" mean please ?

sabretoothtigger

http://lmgtfy.com/?q=preferred+shares&l=1:p

mrposhman

fatpig wrote: »

What happens when the Tories get into power? They've said something today about breaking these banks up. RBS shares are just one big gamble.

How so? Theres no guarantee that this would result in wipeout for shareholders. In fact its more likely that they hive parts of the bank off and split all shareholders holding from 1 company into say 2 or 3 effectively spreading your risk - ie more diversified.

You really should think a bit more troll.

mrposhman

Buddy195 wrote: »

Wouldn't say any banks are shrewd at present. I've dipped in and out of bank shares making quick small profits and buying back in when price goes down.

Have you worked out how much you would have made if you had just left the money where it was instead of moving it in and out.

In my experience, unless you are very very good or very very lucky, overtrading can be very damaging to your wealth.

McSaver

Buddy195 wrote: »

Wouldn't say any banks are shrewd at present. I've dipped in and out of bank shares making quick small profits and buying back in when price goes down.

I did this with BARC but got left behind when I sold at 1.18