Was I Wrong Not to Invest in Royal Mail?

THE WEEK: Morningstar columnist Rodney Hobson re-examines the investment case for Royal Mail shares, after choosing not to get in at IPO

Rodney Hobson 20 July, 2018 | 12:41PM

Royal Mail caused quite a stir when it IPO'd but then shares were in trouble

None of us like to admit we get things wrong and it is particularly hard for investors to do so. From time to time, however, it is worth visiting longstanding prejudices and taking a long cold look at whether a) the original view was mistaken or b) circumstances have changed.

I didn’t take a stake in the privatisation of Royal Mail (RMG) because I am a long-term investor and I was concerned about its long-term future. Letters have been in decline ever since faxes, let alone emails, were invented and there was a real fear that private delivery firms would cherry pick parcel deliveries by serving only the easy routes in and between major cities.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Royal Mail PLC172.05 GBX-0.03
Vodafone Group PLC129.64 GBX0.12

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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