THINKING OUT LOUD

Going wrong with Aussie banks

For investors in Australian banks, the stock charts (click here for link) of the four major Australian banks (ANZ, Commonwealth, NAB and Westpac) show that over the past 4 years it has been possible to have either lost money or currently show a capital loss.

It all depends when you bought them.

It is concerning that retail investors often elbow their mates in the ribs and re-affirm that “you can’t go wrong owning bank shares”.

Well, yes you can!

As an extension of my recent post about the misnomer of “blue chips” being the major qualifier of asset quality and safety, these charts shows without any reference for fundamental valuation analysis that investors can do themselves a disservice by not being intellectually honest.

 

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More Hamish Douglass insights

Courtesy of the 2017 Switzer Listed Investment Conference, held on August 31, 2017....

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