Last 10 years: Compare BHP and RIO to DJS

[GG999]

OK, this is a bit disconcerting as a newbie to shares

I've just heard on Your Money Your Call
Sometime early March 2011 (It was recorded)

That over the last 10 years, despite mining boom and enormous profits from mining

You would have made more if you had David Jones shares

than either BHP or RIO


Can this be true?
Please someone stop me going out to buy DJS or similar

 

[skc]

OK, this is a bit disconcerting as a newbie to shares

I've just heard on Your Money Your Call
Sometime early March 2011 (It was recorded)

That over the last 10 years, despite mining boom and enormous profits from mining

You would have made more if you had David Jones shares

than either BHP or RIO


Can this be true?
Please someone stop me going out to buy DJS or similar

According to Comsec.

DJS 10yr avg annual total shareholder return = 21.8%
BHP 20.2%, RIO 14.4%

Moral of the story...Never under estimate the spending power of women...

Actually, the comparison is interesting but slightly unfair. Mining industry works in different cycle to retail. DJS was really underperforming 10 years ago so it started at a low base. On the other hand, the big miners were derailed very substantially by the GFC... RIO was a $100 stock before GFC without the highly dilutive capital raising. Take the figures from 1997 to 2007 and the figures would be different I think.

So the true moral of the story... buy with the greater industry cycles and time your holding.

 

[So_Cynical]

10 year comparison chart shows a very similar pattern for all three...i don't know how the chart handles share consolidations etc, this chart don't show it but i tried one with CPU and then CSL and WOW thrown into the comparison and they all under performed in comparison.

RIO is the under performer here...but they did issue alot of share during the GFC i think? don't know about the other 2.
~

 

[skc]

10 year comparison chart shows a very similar pattern for all three...i don't know how the chart handles share consolidations etc, this chart don't show it but i tried one with CPU and then CSL and WOW thrown into the comparison and they all under performed in comparison.

RIO is the under performer here...but they did issue alot of share during the GFC i think? don't know about the other 2.
~

Total shareholder return also reinvests the dividends. DJS yields 5-6% while BHP/RIO ~1.5-2%. The chart doesn't include that either.

 

[danbradster]

10 year comparison chart shows a very similar pattern for all three...i don't know how the chart handles share consolidations etc, this chart don't show it but i tried one with CPU and then CSL and WOW thrown into the comparison and they all under performed in comparison.

RIO is the under performer here...but they did issue alot of share during the GFC i think? don't know about the other 2.
~

RIO was an outperformer for me, netting like 50% in a few weeks after buying into the capital raising (if I remember correctly!).