Banks

Just in case people think that I am brilliant at investing, I am not.  Resource stocks have plunged as China struggles to maintain its growth.  So I have been severely severed!

But in the midst of the devastation, I have always maintained that Aussie banks print money.  I have only sold off NAB completely due to its poor management.  Its move into the UK and bad financial decisions meant that the share price continued to fall and its profit lagged the other three major banks.

In the middle of the financial crisis in 2008, I started to build a holding in WBC in my super fund portfolio.  And it was not a particularly clever strategy but then it is always difficult to pick the trough.  However, a good topping up with the share purchase plan has helped.  That was my cheapest price for WBC.

I cancelled ALL my DRPs because it is hard work when calculating capital gains tax.  From that point of view, it was a bad decision. But it is easier for me to buy bulk where cost of acquiring the shares is easier to follow.

Today WBC (and ANZ earlier in the week) produced a good set of "beyond expectation" result.  I am happy and the market will be happy too.

I have no intention now of buying more bank shares as, like many analysts, there is a few that it could be a bubble.  A bubble?  It is never a bubble if there is PROFIT!  But I like to buy shares when others are dumping...