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08:41
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Originally posted by Nydem:
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I can understand your thinking ....for us our recent buys were more about the returns over the next 12 months and onwards. Our recent WES buy was part of that income calculation along with some other income producing shares in different sectors (diversification of shares). Just as an example not using our actual figures but an example on a $500K investment for a family business we could currently receive an interest rate of around 2-2.5% from the banks....interest rates for businesses being much lower than personal rates currently .....for the shares we invested in with WES along with other shares we can get an average return of around 7.65%. In terms of income producing i'd much rather have the latter than the former ....and in terms of stability any increased return carries with it a degree of risk which imho is mitigated by our low average cost on all these shares ....on balance I feel that in the long term WES will easily return over the $55 perhaps even up to $60 mark so long term yes even at these prices some growth there is possible, along with stable dividends.
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Wes will go higher in the long term, however at this price and economic environment would it beat the index (all ords) in the short term? My opinion is no, not at its current EPS and likely massive consumer shock to come. Hence why I wouldn’t buy at this price, albeit I wouldn’t and won’t sell my existing holdings for the same reason as you - diversified earnings.
(20min delay)
