Hobson: My Golden Rules on Takeovers

THE WEEK: Morningstar columnist Rodney Hobson revisits some key principles on takeovers after the approach for security firm G4S fell through

Rodney Hobson 10 May, 2019 | 10:05AM

Dart board target

I follow three basic rules on takeovers:

Rule one: Don’t buy shares in companies purely on hopes that they will be on the receiving end of a bid. You are likely to end up with a portfolio of failing companies and no-one comes forward to put you out of your misery.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
G4S PLC186.00 GBX-3.93
National Express Group PLC119.70 GBX-7.57

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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