please help. a relative of mine has loads of shares in them which i hope to inherit at some point in the future but i know zilch about shares. in the general scheme of things are their shares doing well? i know they've had a lot of grief from the chinese of late and talk of mergers .
and who could forget little ratboy?
Hi,
Rio Tinto along with other miners are good long term investments. But they are way too volatile most of the time unless your relative bought them right at the bottom when they were cheap. Personally i'd off load them as its not unusual to see fast moving stocks like these go belly up big time. Again it's all about how much they were worth when they were originally aquired.
Sorry Siam, completely disagree.
The consensus from analysts is that they are a long-term buy and hold. Also, I'm guessing that the decision is one for your relative as I assume you haven't inherited them yet. Short term vol is on line with the FTSE so they would appear to be reacting to the macro factors in the global economy rather than anything specific to do with the company. Vol in general is very high (about 37% for the FTSE) at the moment so I'd ignore that. I think Siam is confusing RTZ with traditionally volatile stocks which tend to be small cap or AIM, which carry far greater risk as they are either small and/or new companies. RTZ is blue chip so it should have plenty of reserves and easier access to credit should it need it.Usual risk warnings, blah, blah, blah!
It's actually return relative to the alternative investments classes and the associated risk, usually measured by the Sharpe ratio. For example, one would expect a company like RTZ to return about 3% above cash (risk free rate) to compensate the investor for the risk that he takes.Originally Posted by siam
Hope that helps.
"Always forgive your enemies -- Nothing annoys them so much !"
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I thought a mining company would be a safe bet, we're running out of resources so they are only going to go in in price?
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^That too.
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the relative in question bought the shares a very long time ago so i guess they should be worth a lot, so i may yet make it to new york one day
and who could forget little ratboy?
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