…the value of your investment may go down as well as up.
At Royal Bank of Scotland’s AGM on May 30th, the chairman Sir Philip Hampton told investors:
I don’t believe that shareholders’ wealth is likely to be restored any time in my lifetime or some lifetimes beyond.
Which is surely the point? They invested in a bank whose management made some appalling judgement calls, didn’t keep a close enough eye on what the board where up to and saw the value of their investments destroyed.
Last time I checked we called that capitalism. The only reason that RBS shares have some negligible value left is that the previous government interfered with the natural process and kept the bank afloat with money stolen from the tax-payer.