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Never Sell Shell

For discussion of the practicalities of setting up and operating income-portfolios which follow the HYP Group Guidelines. READ Guidelines before posting
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IanTHughes
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Re: Never Sell Shell

#142760

Postby IanTHughes » June 1st, 2018, 11:26 am

idpickering wrote:I do get where you're coming from. I only hold Sainsbury's in the overall sector because I think they're the best one available, and people have to buy food somewhere. Much like the fact that smokers have to buy their chosen fix.

I find this a puzzling argument. Are you suggesting that people do not need to buy clothes? Household Goods? Furnishings? Are we all going to be setting up our workshops like manic elves and making all these other items? And all the while we will refuse to make bread? Bake a cake?

Do not misunderstand me, the retail sector is definitely going through some troubles thanks to our changing shopping habits but I would suggest that we will still be looking to shopkeepers to provide most or even all those products, however we choose to shop for them.

Likewise, to get back to the topic of this thread, the need or otherwise for Royal Dutch Shell ‘B’ (RDSB), oil remains a fundamental driver of our economy. Changes are afoot for sure but slowly and in any case, why won’t companies like RDSB, an energy company with decades of experience, be involved in those changes? In the forefront of whatever type of energy our economy turns to, if oil becomes too costly? I tend to think that Company Directors and Senior Management are savvy enough to see a changing world and make plans to adapt the businesses they lead and work for, to continue making a contribution

I cannot see into the future but I feel confident that companies like RBSB and, in the Retail Sector, Marks & Spencer (MKS), will more than likely still be around. That is not to say one should invest in these companies blindly, nor that there will not be some casualties, there surely will be. But, do not refuse to invest because of unsubstantiated opinions of a future world and the equally unsubstantiated feelings that companies cannot or will not adapt.


Ian

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Re: Never Sell Shell

#142773

Postby Nimrod103 » June 1st, 2018, 11:53 am

IanTHughes wrote:
idpickering wrote:I do get where you're coming from. I only hold Sainsbury's in the overall sector because I think they're the best one available, and people have to buy food somewhere. Much like the fact that smokers have to buy their chosen fix.

I find this a puzzling argument. Are you suggesting that people do not need to buy clothes? Household Goods? Furnishings? Are we all going to be setting up our workshops like manic elves and making all these other items? And all the while we will refuse to make bread? Bake a cake?

Do not misunderstand me, the retail sector is definitely going through some troubles thanks to our changing shopping habits but I would suggest that we will still be looking to shopkeepers to provide most or even all those products, however we choose to shop for them.

Likewise, to get back to the topic of this thread, the need or otherwise for Royal Dutch Shell ‘B’ (RDSB), oil remains a fundamental driver of our economy. Changes are afoot for sure but slowly and in any case, why won’t companies like RDSB, an energy company with decades of experience, be involved in those changes? In the forefront of whatever type of energy our economy turns to, if oil becomes too costly? I tend to think that Company Directors and Senior Management are savvy enough to see a changing world and make plans to adapt the businesses they lead and work for, to continue making a contribution

I cannot see into the future but I feel confident that companies like RBSB and, in the Retail Sector, Marks & Spencer (MKS), will more than likely still be around. That is not to say one should invest in these companies blindly, nor that there will not be some casualties, there surely will be. But, do not refuse to invest because of unsubstantiated opinions of a future world and the equally unsubstantiated feelings that companies cannot or will not adapt.


Ian


In general, I agree with these comments. But the problem for M&S is that they are working in a very competitive marketplace, which has become even more competitive because of the growth of online shopping, and rapidly changing fashions.

Shell OTOH (while the prices of their oil and gas products are basically fixed) is a dominant player in the international industry. They are big enough and international enough to make best use of technology and finance to outcompete smaller players, in dealing with the Governments they operate under, and the customers they sell to.

idpickering
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Re: Never Sell Shell

#142777

Postby idpickering » June 1st, 2018, 12:05 pm

IanTHughes wrote:
idpickering wrote:I do get where you're coming from. I only hold Sainsbury's in the overall sector because I think they're the best one available, and people have to buy food somewhere. Much like the fact that smokers have to buy their chosen fix.

I find this a puzzling argument. Are you suggesting that people do not need to buy clothes? Household Goods? Furnishings? Are we all going to be setting up our workshops like manic elves and making all these other items? And all the while we will refuse to make bread? Bake a cake?

Do not misunderstand me, the retail sector is definitely going through some troubles thanks to our changing shopping habits but I would suggest that we will still be looking to shopkeepers to provide most or even all those products, however we choose to shop for them.

Ian


Hello Ian. Of course I’m not suggesting that that people don’t have to buy the items you mention. I agree that retail is having a hard time currently. Either way, Sainsbury’s remains my retailer of choice.

Ian.

IanTHughes
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Re: Never Sell Shell

#142807

Postby IanTHughes » June 1st, 2018, 1:10 pm

idpickering wrote:Sainsbury’s remains my retailer of choice.

I also hold Sainsbury’s (SBRY), bought way back in 2012, but it is no HYP choice right now. With three consecutive annual dividend “decrease” followed by the recent “hold”, they still have to show me that they have turned the corner.

Ian

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Re: Never Sell Shell

#142824

Postby Dod101 » June 1st, 2018, 1:38 pm

I bought Sainsbury in 2012 and sold in January 2014 at £3.709, a small profit. I concluded then and have had no reason since to change my mind that retailers were not a good place to be.

I have just read 'The Art of Execution' which was recommended by somebody on TLF recently. I agree with most of it but in particular, hold a small concentrated portfolio. With a large 'diversified' portfolio you are simply exchanging one risk for another and made it more difficult for yourself to keep tabs on the constituents. he made not have said quite that but that was the gist I took from it.

None of this has got a lot to do with Shell.

Dod

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Re: Never Sell Shell

#142829

Postby Raptor » June 1st, 2018, 1:44 pm

Moderator Message:
All very interesting but can we get back to the OPs post. Thanks. Raptor.


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