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Provident Financial - Woodford, Barnett & Darwall
Comments
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Look at the interest rates.What surprises me is a business with a loan book of £500m is worth so much.
Part of Woodford's success is because he will invest in sectors the 'ethical' investors won't touch.
Not saying I agree with them - I'm a realist.
Without tobacco companies cigs would be sold by drug dealer gangsters.
Without Provident we would have more loan sharks.
Both would be worse.“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair0 -
Surely the collectors are the same people though, I know there are less and they are officially employed rather than self employed but even so were they not from that group?
What surprises me is a business with a loan book of £500m is worth so much (yes I know I do not know enough about the business).
Vanquis bank, Moneybarn & Satsuma are the other 3 parts of the business0 -
AnotherJoe wrote: »This does put the lie to all those who say that you can't beat the market because how can you know better about a company than an all those super sophisticated investment companies who can do ultra detailed research, talk to the execs etc. Like Woodford no doubt did.
IMO if you understand a market (especially a new one, or new tech in an established field) its possible to get ahead of the game. And that might be positive, as in investing in a company, or negative, as in not investing, or in selling at the right time, eg before most people react to whats happening Including the execs of those companies.
Numerology is still numerology whether practiced by an professional or amateur. The capacity for hubris and self delusion is how Woodford makes money.......not fundamentally by the returns on his funds.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
But there is also the little matter that if you lumped in £10,000 with Woodford in 1989, it would now be worth more than £300,000.0
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dividendhero wrote: »As for longer term, as I understand it the problem "doorstep lending" side of the business is one of four divisions and the other three divisions are fine.
There is also the risk with the ROP product sold by Vanquis Bank division (between April 2014 and 2016) which is under regulatory investigation by the FCA. Provident Financial have suspended new sales of that product from April.
If they have to pay the premiums back on the ROP product (PF's version of payment protection insurance) like the banks had to do with PPI it will be very costly for them.Never let the perfume of the premium overpower the odour of the risk0 -
Glen_Clark wrote: »Look at the interest rates.
Part of Woodford's success is because he will invest in sectors the 'ethical' investors won't touch.
Not saying I agree with them - I'm a realist.
Without tobacco companies cigs would be sold by drug dealer gangsters.
Without Provident we would have more loan sharks.
Both would be worse.
Personally, I think it is just an outdated company that has not kept up with the times. The management has been particularly poor, so to me , it beggars believe that these 'star managers' don't know what's really happening especially if 2 of the star managers own 40 percent of the company!0 -
Personally, I think it is just an outdated company that has not kept up with the times. The management has been particularly poor, so to me , it beggars believe that these 'star managers' don't know what's really happening especially if 2 of the star managers own 40 percent of the company!
Woodford as a comoany obviously isn't that old, as he was with IP for so long, so it's a bit odd to say it's not moved with the times.
He took a lot of stick around the millennium as well before the dot com bust, so he'll maintain that he'll bounce back, whether he will is a question of time.0 -
Woodford as a comoany obviously isn't that old, as he was with IP for so long, so it's a bit odd to say it's not moved with the times.
He took a lot of stick around the millennium as well before the dot com bust, so he'll maintain that he'll bounce back, whether he will is a question of time.
Sorry, I was referring to Provident as the 'outdated company that has not kept up with the times and the management has been particularly poor'.0 -
Sorry, I was referring to Provident as the 'outdated company that has not kept up with the times and the management has been particularly poor'.
It looks like the issue is that the out dated model was working just fine and it's when they tried to keep up with the times that things went pear shaped0
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