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Investing Big in Tesco

  • 05-09-2007 10:40pm
    #1
    ShoulderChip
    Registered Users, Registered Users 2 Posts: 3,875 ✭✭✭


    Hi i just found out my dad invested a truck load of money into Tesco.
    He bought the shares last month at 4.14
    do you think this will be a good investment in the short and long term?
    he bought the shares on the UK market so will the introduction of tesco into america affect his share price? thanks for any help!


Comments

  • #2
    A Random Walk
    Closed Accounts Posts: 346 ✭✭A Random Walk


    Tesco would be a consumer non-discretionary i.e. even in a recession it would be expected that their sales would hold up. Because there has been a lot of recession fear recently, the consumer non-discretionary sector would have been bid up recently (i.e. has become quite expensive) as it would be seen as a "defensive" stock.

    Long term it's probably going to be a solid performer, but I wouldn't be surprised to see quite a bit of volatility in the near term. It's a bluechip and very large, so don't expect to see wild swings.

    Diversification is important when investing, if your Dad has investments in a few places well and good, but putting everything down on one stock isn't a good idea..


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