Are banks still worth the investment?

This is a comment, not so much a question. Alan Kohler seems to disagree with you, but I am going to go with your thoughts on this.

I think that I can put up with some significant fluctuation in capital values of my bank stocks over the years in my pension fund, but my sensitive points would be reduced dividends and bankruptcy.

With those thoughts in mind I tend to think that even a regional like BOQ is still a fair bet for the next few years. Do you agree?

A: It's exactly what I am doing for my super fund. Of course I do have 20 stocks in my fund and so I do limit my exposure to a bankruptcy.


On dividends, sure you can see a fall in dividends but looking at CBA's returns it only lasted a year and bounced back better than before.


We are all taking risks with shares over term deposits but that's the price we pay for wanting better returns.


Have a look at Charlie Aitken's story tomorrow.


Regards.



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