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Taylor Wimpey PLC (TW.L) | Investments


A lot of shares seem cheap now as we appear to be coming out of a recession. Taylor Wimpey shares have been rising steadily since 2008, but are still a fraction of what they were in 2007. They could return to the highs of over £4.00 a share as the economy recovers. I think there is a housing shortage and they are in a good position to do the building, if the government gets it’s act together.

I don’t think the government will be quite so keen on austerity as the next election nears. I expect some sweeteners for it’s supporters in future budgets. If middle England finds itself better off financially, it could lead to yet another housing boom and house prices will bubble up again. I would prefer to see a boom in social housing after the next election, which could be possible too. Either way, Taylor Wimpey could be a good investment choice.

I have been doing quite well since starting these investment blog posts. Premier Foods is up 224% on what I paid in 2011, Lloyds Banking group are up 146% and RBS that I bought last February is up 17%. So I decided to make the portfolio more diverse by buying Taylor Wimpey and Solo Oil this week. It’s still not diverse enough, but I’m getting there. I paid about a 100p for Taylor Wimpey shares this week and I think they can go much higher.

I’m thinking of putting more money into peer to peer lending with Zopa too. That’s not as risky as it was, but the returns aren’t so good. I think 4% is still better than inflation and far better than a bank account.

The culture of buy now pay later led to payday loans and buy to let landlords. Many people didn’t know how to invest and so invested in what they knew, bigger and better homes. Buying a home is a great investment, but you can’t sell it when times are hard and payday loans are tempting. It’s better to save and invest when times are good. When times are hard, investments are cheap, so now I’m investing.

What do you think? Please share your thoughts in the comments box. You can also subscribe or follow me on Twitter for updates.

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2 responses

  1. Frank Taylor

    “They could return to the highs of over £4.00 a share as the economy recovers.”

    I don’t think so. After the share issue in 2009 there are 3x as many shares as there were in 2007 (3.23 billion at present)

    1, September 2013 at 8:59 pm

    • Hi Frank,

      Thanks for the information. I think based on recent contracts they could still give a decent return. I’m not greedy! 🙂

      1, September 2013 at 11:29 pm

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