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Re: Barratt a decade on

lse:bdev

#1

So the discussion board is empty! Where are all those experts of yore?! Oh how they knew everything, especially their Dad’s Army Economics - mainly ‘we’re all doomed.’ Well around spring 09 you could have bought BAR for ca 39p ps. Today nudges through £8 ps. So that’s cagr ca +35% pa over the past decade, before some pretty hefty dividends. They’ve obviously all gone bust. Great. Clearly far from as smart as they thought they were. Also, perhaps surprisingly, there’s a lot more to come!


#2

Hi Malj,

I was one who bought BDEV and TW ten years ago and, yes, indeed they have done very well. I still hold and reinvest the dividends. I would say that builders have prospered on the back of poor government housing policy which has allowed the erosion in the supply of social housing and a persistent shortage of houses generally. The Tory govenment’s only strategy has been to pump up the market with Help to Buy which has served to boost the profits of builders without doing anything meaningful to encourage the elimination of the shortage of houses or to reduce prices. I don’t need to say that neither of these would be in the interests of the housebuilders…so I will.

Cheers,

Frog in a tree


#3

I think its helped, but the population rise over the same period has probably more than wiped out the benefits.

The Tories have talked over and over about policies ‘to help smaller builders’ specifically, but it has never come about. I assume they either couldn’t think of any, Brexit issues got in the way or they realised that more building would mean more migrant labour required.

Social housing is an ideological no no for the Tory party, especially the far right who now hold the reins of power. I don’t think we can discount that either.