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Buy Bank Shares ??

March 21st, 2009 at 05:21 pm

Hi all.... back under new management...

29 yr old soon to be 30 yr old bungee-jumping apartment living hero !!

oh yeah.... and modest too :-)

Bank shares... One Irish Bank has already been nationalised. The two big banks, Bank of Ireland and Allied Irish Banks, have had billions pumped into them by the Government in a recapitalisation effort. Their share prices have dropped hugely.

For example, Allied Irish Banks current share price is approx 0.60 Euro. This time last year it was approx 12.80 Euro.

However a self-made billionaire investor, who even has his own bank, recently purchased AIB shares. Obviously he is not expecting it to be nationalised in the near future and he is optimistic of an increase in share value.

All the radio pundits are saying avoid bank shares like the plague.

It has just occurred to me that these are the same pundits who advised us to get on the property ladder before it is out of reach - stoking the housing bubble fire.

Well...what about going against the pundits, following a billionaire investor and adopting a contrarian approach (a bit like Mr Buffett) and buying 100 or 200 euro worth of AIB shares.

Post recession, say 4/5 years from now, they could be worth (pie-in-sky figures I know) say 6 - 10 euro.... a 1000% increase on my investment...

What you think ?

2 Responses to “Buy Bank Shares ??”

  1. disneysteve Says:
    1237672754

    Here in the US, we are asking ourselves the same question. Just 3 weeks ago, I purchased shares in Bank of America for $5/share. It continued to fall as low as $2.50 before bouncing back as high as $8.57. I sold at $8.06. Then the price slipped back and is sitting near $6 currently, so it is a wild ride.

    I'm guessing the same is true with your banks.

  2. Apprentice Bliss Hunter Says:
    1237747188

    It's seems to be similar here.

    They might be value to be had - if the chosen Bank can avoid nationalisation that is !!

    Well done on the profit Steve ! :-)

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