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Does not surprise me a bit. I have argued long time ago that I think PBR was a poor choice for a variety of reasons I outlined before.
It’s like Verbundkraftwerke in Austria. A hydroelectric power producer monopoly- should be cashcow. But mostly government owned is managed to serve the majorityowners interest.
They will have to become share holder friendly.
If they divest some of the holdings to decrease the government share the divestments should be at a fair price and not another insider deal where politically connected cronies get businesses at a below market fair prices-
It will require a lot of homework
The easier part is to just stay away
Even though Statoil is as you say 67% government owned – Norway as a country is not broke as many other countries are. Unemployment is also low so there is no need to fill the company with “voters”. I would say Statoil as a resource company appears to be not a bad choice. No idea what their reserves are and what partnerships they have to continue staying in business though.
Jay, good to see somebody agrees with me even though it looks like Rob is still convinced it was a good long term investment. I did unfortunately follow his early advise assuming he knew something I did not. Large government controlled business have an inherent problem – they are filled with people who’s forte are the political connection and not their competence. If you add to this a majority government ownership and a culture where bribes are the norm and where property rights are poor its another reason to stay away. This is the case with Russian giants like Gazprom, another of Robs choices. Yes, money is being made there – however it does not benefit the shareholders. Just look at what’s going on in the Ukraine right now. Here you have a basically rich country which is broke. Thanks to Oligarchs and corrupt lawmakers starting at the highest level.
I would say small denomination gold coins like 1/4 OZ or 1/10 OZ.
In 1945, when there was not much to eat in post war Austria, my mother traded a small barrel of pigs fat for a few Swiss franc gold coins from a farmer. This made quite a difference for us. Don’t think a gold bar would have been as useful.
I trust SGOL more. No factual reason though other than hearsay.
Thanks, I did not expect a direct response – since this should be of interest to all members- a generic, why PBR is good even though a goverment owned business, would be really all I was hoping for.