The interim royal report didn't have a nice sound to it, there's risk of a poor year end from fines. But they'll wrap that up and the following year will be ok.
Im hoping the sp will drop so i can get a bargain.
Im not worried.
Printable View
The interim royal report didn't have a nice sound to it, there's risk of a poor year end from fines. But they'll wrap that up and the following year will be ok.
Im hoping the sp will drop so i can get a bargain.
Im not worried.
Also, i read on motley fool (meh) that wbc in oz are recalling high lvr mortgages.
They'll be $28 after the dividend if the current price holds. I can't see them going below $26 on the royal commission results. It'll be great buying at some point (double your money in a year type stuff), but until then im happy with my current strategy: buy below $30, sell above when its in profit. Enjoy the dividend if it takes a while to get back into profit.
I dont think wbc is a buy and hold, personally. Because they are large enough to have not much room for growth. Also from a technology perspective theyre not very innovative. Though notably they're bringing out wearable chips. Large financial services tend to think up ways to trick or rob people out of their money instead of having a real growth strategy, until an ombudsman comes along or a royal commission lol
Personally, I love banks and the services they provide. A safe place to keep my money, ease of payments for the things I buy, interest on idle cash and, above all, a willingness to lend me money for my investments. I would not have been able to retire as early as I did without them.
As for WBC, looking back, it's been a good company to hold over many years - I've long since had my investment back in tax-free dividends. Looking forward, I agree that it's hard to see WBC (or any large bank in developed markets) delivering above GDP levels of growth over the longer term but at current prices I'm still happy to hold for the dividend yield.
problem with banks is how quickly some of those assets need to get provided for as 'poor performers' and written off. With such enormous leverage when things go bad they really go bad.
But I agree that the yield is looking really attractive under $30. and it is hard to see them failing though worst case scenario it is possible.