Lloyds Banking Group AGM statement re: dividends.

[GoSeigen]

I think you have mentioned a figure of £4.50 per share ...however that was on another thread which GS might not have seen ( hence the query).

Thanks. I will leave it there but I do not agree with GS that banks are or were a good investment for anyone not even the dedicated HYPer. With or without the intervention of the bullying PRA they have not been much of an investment since at least the financial crisis of 2008/9. I cannot see Lloyds being much good even after/if they restore their dividend. Everyone talks of a recession if not worse and for a bank totally depended on the UK economy where are the profits going to come from? HSBC is probably going to be just as bad with or without the China/Hong Kong problem. I will at least reduce my exposure but will see if the price recovers a bit first. It is not 'thick' to sell, knowing that the price is at an all time low because it might go even lower, but I will try to avoid that if I can.

Dod

Well, glad you recanted from the urge to sell. Now grit your teeth and buy a few before they get to 2x book? If banks are not a good buy now, then when will they ever be?

As for "where are profits going to come from?": strategic ignorance my friend, strategic ignorance!


GS

[Dod101]

Well, glad you recanted from the urge to sell. Now grit your teeth and buy a few before they get to 2x book? If banks are not a good buy now, then when will they ever be?

As for "where are profits going to come from?": strategic ignorance my friend, strategic ignorance!


GS

I have more than enough already and will not be remotely tempted to buy any more. I will sell down my holding when the price is what I deem to be acceptable. Strategic Ignorance is just intellectual laziness.

Dod

[G3lc]

Or accepting that you don’t have the ability you think you have to see into the future.

[Dod101]

Or accepting that you don’t have the ability you think you have to see into the future.

Taking a view on where events are moving us is not seeing into the future and I have never claimed that, but to espouse all attempts at considering where things are moving and the likely result of that on my investments in the name of Strategic Ignorance is intellectual laziness.

Strategic Ignorance. What does it mean anyway other than deliberately disregarding any possibility of any idea of what is going to happen in the future. Investors who practise that deserve all that they get. Very few in any case practise Strategic Ignorance otherwise they would not do very much.

Dod

[G3lc]

............or even feel the need to talk about it very much.

[GoSeigen]

Well, glad you recanted from the urge to sell. Now grit your teeth and buy a few before they get to 2x book? If banks are not a good buy now, then when will they ever be?

As for "where are profits going to come from?": strategic ignorance my friend, strategic ignorance!


GS

I have more than enough already and will not be remotely tempted to buy any more. I will sell down my holding when the price is what I deem to be acceptable. Strategic Ignorance is just intellectual laziness.

Dod

Exactly! As is not knowing where bank profits come from!!!! [EDIT: When you own "more than enough" bank shares...]

GS

[vrdiver]

Perhaps time for a gentle reminder as to the definition of "Strategic Ignorance":

Strategic ignorance - This means deliberately ignoring all forecasts and opinions for the long term future of the economy, the sector or the individual share on the basis that nobody knows and that those who think they know, know even less.

https://seekingalpha.com/article/842731-high-yield-portfolio-what-is-hyp-investing

I trust my fellow lemons are able to differentiate between known events, facts or RNS releases, and the long term "guesses" that have so many indeterminable variables that they really are no more than crystal ball gazing.

To paraphrase pyad, don't base your investment decisions on crystal ball gazing.

He did not say to ignore ALL information, just the fortune teller stuff...

VRD

[Gengulphus]

Strategic Ignorance. What does it mean anyway other than deliberately disregarding any possibility of any idea of what is going to happen in the future. ...

As defined by pyad, it means deliberately disregarding any possibility of any idea of what is going to happen to companies in the long-term future. I.e. it doesn't say to deliberately disregard ideas about what is going to happen to companies in the short-term future (e.g. it doesn't rule out paying attention to forecast dividends), nor to disregard ideas about what is going to happen to areas of the economy in the long-term future. For instance, I'd feel pretty safe in predicting that renewable energy will be a growth area of the economy for many years to come, but making similar predictions about particular companies is decidedly fraught: some companies in the area will fail, while some companies not in the area will move into it...

By the way, note that I'm neither supporting the use of the concept of strategic ignorance by HYPers nor opposing it by saying the above. I'm just saying that one needs to have a correct understanding of what it is (and just as important, what it is not) to be able to discuss it sensibly!

Gengulphus