HGH - Heartland Group Holdings

[IAK]

A lot of us who were investing back then lost heaps. On paper I lost ~$10k, but that was'nt a true reflection as shortly before the crash I pulled ~$20k and bought a new car. Most of us were expecting a correction, it was just the sheer size that caught most by suprise. Those who had investments in companies that were actually producing (Fletchers, Forest Products, Waitaki NZR etc) still came through the far side with some assets. Those who invested mainly in financials and investment companies are the ones who lost the most.

I believe that the same would happen again in the event of another major crash. Those companies that actually produce goods and/or services would survive, while those that rely on simply moving money would be the ones most affected.

Excuse my ignorance but isn't Heartland Bank a financial institution? I have yet to take the plunge on this one for the very reasons you have outlined.

[Jantar]

Excuse my ignorance but isn't Heartland Bank a financial institution? I have yet to take the plunge on this one for the very reasons you have outlined.

That's why its such a small percentage of my portfolio despite the strong performance.

[goldfish]

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.

Lol, nothing wrong with that, i did it with peb when they signed there first usa insurer, had just started investing and made half a years salary in a week. Had no idea at first what i was putting my money into but everyone here seemed excited.
I did it again with ton on the asx and made decent money to before it burst.
As long as you have a tight stoploss and take profit while its there its worked well for me.
A lazy way to trade but if it works why the hell not i think.

[percy]

That's why its such a small percentage of my portfolio despite the strong performance.

As far as I know only one NZ listed company reports to The Reserve Bank,and that is Heartland.
I would think that would make Heartland possibly the safest listed company to invest in.in NZ.
For added protection Heartland has Fitch as its credit rating company.

[mouse]

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.

Heartland is a Finance Company, cunningly dressed up as a Bank. Banks go BANKrupt. Even ones who are actually Finance Companies. We could be in a bubble now, but equally be in a Black Hole, being sucked into the centre and consolidated. But the journey is pleasant and the capital growth from 50 cents amazing.

[winner69]

Heartland is a Finance Company, cunningly dressed up as a Bank. Banks go BANKrupt. Even ones who are actually Finance Companies. We could be in a bubble now, but equally be in a Black Hole, being sucked into the centre and consolidated. But the journey is pleasant and the capital growth from 50 cents amazing.

Well the finance guy at the time was quoted as saying getting a banking licence and calling themselves a BANK was just an marketing / advertising ploy

[Beagle]

Reserve bank is very happy with their operation, so is Fitch. Capital adequacy is fine, interest rates are at very low level's which is generally assistive in terms of making it easy for customers to service their loans , (lower level's of average loan delinquencies). I used to be "Thomas the doubter" but thankfully saw the light some time back...not as early as others but buying at 86 cents AFTER they'd received their investment grade credit rating upgrade last year was one of my most astute decisions for 2014. Barring a GFC Mk2 I see very little risk but what I do see is a company on a very reasonable PE ratio with a high dividend and excellent growth prospects.
No share is completely risk free but I reckon Its a very tough gig finding stocks with a better risk reward profile than HNZ

[winner69]

Heartland is a Finance Company, cunningly dressed up as a Bank. Banks go BANKrupt. Even ones who are actually Finance Companies. We could be in a bubble now, but equally be in a Black Hole, being sucked into the centre and consolidated. But the journey is pleasant and the capital growth from 50 cents amazing.

Most of old Heartland is old fashioned building societies

[Beagle]

Most of old Heartland is old fashioned building societies

Yep, that's another point well made.

[winner69]

Most of old Heartland is old fashioned building societies

Meant to add that that it appears that there has been a very high retention rate of those building society customers and a high rate of deposits rolled over when they matured.

So most of the old building society customers seem more than happy to be dealing with a BANK. If anything they probably think they are better off belong to a NZ Bank rather than say Canterbury Society

And a lot of those building society traditions like community involvement remain, if nit enhamced.

Marac might be the financial company part of the overall business but the total business is more than a finance company. Would a finance company have special plans for parents to ensure that their kids get a good education?

I think their School Fees Program is a great thing for parents and even for grandma and grandpa to make sure their lovely kids get an education - a really cool initiative

And probably those kids will be customers for life as well, and hopefully richer than mum and dad