BHP’s investment lessons
BHP is arguably one of the companies listed on the Australian stock market that can best illustrate two very different approaches to investing in the stock market.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Louie
:
Bhp doesn’t have a dividend reinvestment scheme in place last time tried was 2yrs ago though
Ghazi
:
Such a quick and informative article, Roger. I am novice investor and I guess sometimes I do get caught up with with the smaller picture when it comes to thinking about business. I love how you look at the bigger picture and make sense of it all. That is the reason I loved your YouTube videos, your book and now your blog.
Keep up the great work with your team. You are helping individuals change their lives, without even realizing it.
Thanks,
Ghazi
Roger Montgomery
:
Thanks Ghazi.
Mark
:
Hi. I get the above analysis but don’t understand where dividends fit in. Isn’t that supposed to be one of BHP’s things? Cheers M
Roger Montgomery
:
Hi mark,
Had you reinvested those dividends back into BHP, would that have been a good thing? The answer therefore depends on where else you invested them, but then wouldn’t the argument be to have all of your money in THOSE things?