Barratt Developments

robertbanking

Hello you very wonderful and intelligent people. I do hope you have had a super week and you are happy.

I kindly wanted your thoughts please on Barratt Developments PLC, i have been conducting alot of researching about the company, its annual reports and its competitors. As you know the interest rates will come down for mortgages, eventually possibly during 2024 and Barratt Developments is the largest homebuilder in the UK. It reached a high of around 870 GBX before the pandemic in February 2020. I feel optimistic that it could reach similar levels again. I kindly wondered what your thoughts are please on this company and the future, it would be interesting to hear your views? I would be so thankful and forever grateful for any advice you can give on this, it would be hugely appreciated.

Sending you lots of good wishes with your investing and i do hope you are doing well. Thank you very much for your support. All the very best to you. 

dunstonh

 I feel optimistic that it could reach similar levels again. 

Is that despite the reports that house building could halve in the short term and fall to the lowest seen since the second world war?

In general, housebuilders do not tend to do well during those periods. Plus, they dont tend to do well when demand drops and/or house prices fall.

jimjames

robertbanking said:

 I feel optimistic that it could reach similar levels again. I kindly wondered what your thoughts are please on this company and the future, it would be interesting to hear your views? I would be so thankful and forever grateful for any advice you can give on this, it would be hugely appreciated.

How does this fit in with the rest of your portfolio? Which other shares do you hold and how much would be in this share?

badger09

Most seasoned investors on here would advise (strongly) against single company investing. Unless you have insider knowledge, which it would almost certainly be illegal to use, it’s a risky gamble. 

If you want to try it, make sure you’re comfortable with possibly making a big loss. Better still, set up a dummy portfolio or watchlist and gamble with pretend money instead.  

Good luck

wmb194

badger09 said:

Most seasoned investors on here would advise (strongly) against single company investing. Unless you have insider knowledge, which it would almost certainly be illegal to use, it’s a risky gamble. 

If you want to try it, make sure you’re comfortable with possibly making a big loss. Better still, set up a dummy portfolio or watchlist and gamble with pretend money instead.  

Good luck

I see no problem in investing in individual companies but you need to be careful to size your positions relative to you portfolio and risk tolerance. In Robert's posts I don't remember him mentioning actually making any trades: so far they've always seemed to be theoreticals.

One of the the beauties of zero commission brokers is that you can buy and sell small quantities of shares in many companies in way that used to be cost prohibitive. E.g., in my own small way I've been playing with replicating my favourite investment trusts, so I own shares in lots of individual companies but the risk is actually spread quite widely.

pridehappy

I’ve never invested in Barratt, however I’ve invested into Persimmon Homes. First few years was a massive success, although recently I’ve felt quite let down. As a result, I’m going to be withdrawing as soon as it’s at a decent rate. House builders just aren’t that consistent.