- Have I read the Prospectus line by line? No
- Have I taken apart the financials? No
- Am I an expert in industrial relations? No
- Do I believe all I have read? No
So why does it just make sense to me?
- The offer looks to be sensibly priced.
- Demand will exceed supply.
- Proposed dividends are well above average.
- I am not locked in. No cost to buy and £ 11.95 to sell ( Hargreaves Lansdown)
- I think the possible rewards exceed the risks.
- The Government will look very silly if this is not a success.
Take a quick profit if possible. I will sell if I can make 20% within the first three months and not look back.
If it goes wrong take a quick loss. If the price falls by 10% in the first three months I’m out.
Still in after three months? Then I am happy to hold for the above average dividend.
But is it right for you? You could fill in a 16 page questionnaire to see whether it fits your risk profile but even then you might get the wrong answer!! Don’t even think about it if :-
- A 10% loss would cause you any financial problems.
- You are not prepared to stay in for the medium term if there are not quick profits to be made.
- It would take you more than a couple of hours to get over the annoyance, frustration and disappointment of having sold at a loss!!!.
- You are not prepared to write down your strategy and stick with it.
One final question – DOES IT MAKE SENSE TO YOU?
Best of luck. Don’t forget this is not advice. It’s your money. Make your own decisions!!!
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