Steven George Conville shares his thoughts about the best investment decision he had made i.e. on the Barclays Preferred Share
Online PR News – 16-October-2013 – Toronto – Toronto, ON, Canada, October 16, 2013 -- Barclays preferred share is one of the best investment decisions according to financial expert Steven George Conville. One of his most proud investment is Barclays preferred share, series 3, the symbol for which was BCS.PR.A. Average cost for this investment was between $12 (U.S.) and $12.50. Their purchase dates ran from November, 2008, to Jan. 1, 2009, which was right in the heart of the doldrums.
Here are some of the reasons given by Conville for choosing this investment as best. His clients could have bought it when the market totally tanked i.e. they could have picked it up at $3 or $4 a share, or whatever the low was. But buying Citigroup at 89 cents, for example, or buying GM at 89 cents is not buying a stock but that is buying a warrant on management’s ability to save the company. That’s not investing, that’s betting.
There were institutions that were going to be ‘too big to fail’. Bank of England was behind Barclays, and governments, globally, were going to do all they could to ensure the Tier One banks remained solvent. And, knowing that, historically, the long-term rate of return on the stock market is 7 per cent, they had these Barclays preferred shares, a security with a risk profile traditionally one-third as risky as a stock, one priced to give them a rate of return far in excess of the long-term rate of return of the stock market.
The market value of BCS.PR.A as of Fri. April 23 was $24.16. So their ‘high’ client has seen about a 95-per-cent capital gain, and ‘low’ client has seen about an 85-per-cent capital gain. The second half of the investment: It’s a preferred share, so yield to clients, if they hold them for the rest of their lives, is an annual dividend of between 15 per cent and 17 per cent. For best client, the one-year return on this investment was more than 100 per cent. This a security with significantly less risk than equities as a whole that’s positioned to give a significantly greater return than equities as a whole. As long as Barclays remains solvent and doesn’t default on the dividend, this is an investment that clients can keep for life.
That’s not to say Barclays won’t default on the dividend, but in the history of the bank, Barclays has never defaulted on a dividend. Once the Bank of England was behind Barclays, there is no reason to buy anything else like RIM, Citigroup or Bank of America. At the time Conville made this investment advice, the most actively traded stocks were AIG, Bank of America and General Motors. And there was no volume, no interest in these preferred shares. They could go in and buy as much of this investment as they wanted.
All opinions expressed by Steven Conville on this article are solely Steven Conville’s opinions and do not reflect the opinions of any other company or organization. Nothing on this article should be regarded as a recommendation to buy or sell any particular investment or follow a particular strategy.
Steven Conville believes that this information is reliable, but does not warrant its accuracy. No information provided on this article should be relied upon as such. Steven Conville does not have any obligation to update or correct any information provided on this article. All opinions of Steven Conville are subject to change without notice.
About Steven Conville:
Steven Conville, is a financial consultant. Currently his main client is Mopals Canada where he is serving as their Chief Investment Strategist. He also advises several high profile athletes and entertainers.
Previous to this, Steven Conville was Vice President and Portfolio Manager with a Major Canadian Brokerage Firm for over six years. Prior to that, he was Vice President and Branch Manager with another Investment firm where he oversaw assets in excess of 750 million dollars. June 2012 was his twentieth year in the financial services industry, of which he spent the last 14 years managing assets for clients. Steven is a Certified Financial Planner Licensee (CFP), a Fellow of the Canadian Securities Institute (FCSI), and has his Canadian Investment Manager designation (CIM). Steven was licensed to sell securities in both Canada and the United States, and he continues to specialize in celebrity wealth management.
Steven George Conville
Toronto, ON, Canada
416 687 1256