Rolls-royce Share Discussion Threads

[medieval blacksmith] 30/7/2021 16:17

careful

It isn't an illusion if your asset generates healthy real income. I'm mostly in tobacco which has underperformed over many years as a sector but still increases profits and is able to pay down debt, pay healthy dividends, buy back shares and invest in Next Generation Products with its cash flow. If the institutions sell off tobacco and the share price falls then you can buy the asset cheaper and cheaper and so can the tobacco companies with their buybacks. No sky high valuations built on jam tomorrow and if I can't sell my shares for the next two decades it doesn't matter - I can easily live off the dividends.

[careful] 30/7/2021 15:40

There have been times in the past where safe returns gave a negative yield.
And yet still been the correct strategy

We all expect to increase our wealth above inflation.
Increase our purchasing power by placing it in the right place.

I do not believe that is possible on aggregate.

Conservation of energy or perpetual motion in science.
Wealth creation for all?....forget it.

If I win, then you must lose.
Bitcoin? Don't get me started.

Cash is the right place to be right now, because shares are way overvalued.
If investors, maybe 10% of them try to cash in their gains, whoosh, much of it has gone.
An illusion.

[1krl] 30/7/2021 15:10

careful. Sitting on cash at zero interest? That is not investing - after inflation, that would give around a negative 5pc return. There are plenty of well-priced, honest and legitimate investments out there to suit all budgets, risk profiles and return objectives.

[spacegazer] 30/7/2021 15:04

What's with the 1 trades?

[justiceforthemany] 30/7/2021 14:29

New virus outbreak worst after Wuhan, say Chinese state media
A Covid outbreak first discovered in the Chinese city of Nanjing has spread to five provinces and Beijing, with state media calling it the most extensive contagion after Wuhan.

[medieval blacksmith] 30/7/2021 14:01

Yes, a good point careful. Although saying that Japan did have demographics that weren't in its favour. An ageing population for example with little enthusiasm from youth to reproduce and little immigration. I know of a country not too dissimilar from this right now. Brexiters need to heed the warning or it will be wash, rinse and repeat here. The US regardless of Trump and his redneck followers has a more pragmatic view.

[careful] 30/7/2021 13:52

So many shares overvalued.
America makes new records.

Why not invest every penny and take on debt to buy assets that rise?
That is the current seductive argument.
A repeat of Japan 1990.
Inflation low, interest rates very low.
Most Japanese got sucked in to get theoretical gains that made them feel smart.

In 1990 the Japanese indexed reached 39,000.
Their market was valued higher than the US markets.
Then the correction.
It fell from 39,000 to below 10,000 over 20 years.

The argument that we must invest cash and buy overpriced shares is a con.
Sometimes cash earning almost zero is the best investment.

ETF's are creating a potential disaster.

[dope007] 30/7/2021 13:12

All true but RR is not cheap, is up 100%,and can't dissapoint at any level, so for me I shall sit on the sidelines after a nice 10% plus gain in both my ISa and on spreadbets

[josh 32] 30/7/2021 13:02

Iag still up 18 percent over last 6 months after this drop

[1krl] 30/7/2021 12:58

IAG results were in line with consensus, so entirely expected - and no surprise given the circumstances. There are some positive things in there too, however. On the economic, monetary woes - its been the same for 10 years or more, and the powers that be seem collectively determined to keep it the way it is. It is the new normal. If the bubble bursts, they will simply start again. To understand and accept this is to see the opportunities. You cannot beat the system - too many have too much invested in it.

[dope007] 30/7/2021 12:34

Now sold my ISA stock after those IAG results

[smurfy2001] 30/7/2021 12:32

IAG said it would operate at about 45% of passenger capacity between July and September on pre-Covid levels, possibly rising to 75% by the end of 2021.

[careful] 30/7/2021 12:16

IAG results were shocking.
We underestimate the permanent damage caused by this pandemic.

Central banks printing money, trillions of debt, almost zero interest rates.

Companies borrowing money to buy back shares, house and share prices pumped up by money printing and debt.
Customers buying with cheap money, profits rising.
World debt at record eye watering levels.

It feels to me that a monumental day of reckoning will come.
Can't believe that Central bankers can keep everyone comfortable buy pressing a few knots and levers.

[1krl] 30/7/2021 12:05

I am sure it will recover soon enough. Today down with wider market and possibly lack of H2 2021 outlook from IAG reporting. Generally, consensus is that travel is at a turnaround point - hang in there and give it time.

[nemesis6] 30/7/2021 11:45

well i hope it recovers....dont want it joining my other failures cna mtro and sgc....(what was i thinking)

[1krl] 30/7/2021 11:23

Some expected profit-taking to close out the month, after a great run in the last couple of weeks. Thankfully no cliffs in sight.

[nemesis6] 30/7/2021 10:46

well it is today and i hold them!

[1krl] 30/7/2021 09:32

What an odd thing to say.
Up 9pc then down 2pc in three sessions is not “orf the cliff”.

[nemesis6] 29/7/2021 14:54

orf the cliff lol

[mbmiah] 29/7/2021 14:48

Just remember, the results are known by the few, not the many.

[dope007] 29/7/2021 11:36

Those are the ones in my ISA Pinemartin9. Paid 88p roughly for them

[pinemartin9] 29/7/2021 11:34

This was a gift horse on last week's drop. Worth having a little cash on the sidelines to look for those opportunities when they present themselves.

[spacegazer] 29/7/2021 11:32

There's a lot of aircraft lying about that if America opens up on 11th Aug are gonna need engines looked at.....must be positive news for RR......onwards an upwards troops

[dope007] 29/7/2021 11:30

Sold my spreadBet trade, held onto a few in the ISA. Still don't think RR is a cheap stock and has a lot of issues to sort out going forward which will inhibit any major re-rating