The Lloyds share price: what have I learned from it?

first_img See all posts by Alan Oscroft Image source: Getty Images Enter Your Email Address The Lloyds share price: what have I learned from it? Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Alan Oscroft | Thursday, 11th March, 2021 | More on: LLOY Simply click below to discover how you can take advantage of this. Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. If any share makes me wonder what lessons I’ve missed over the past 10 years, it’s Lloyds Banking Group (LSE: LLOY). And I know my biggest weakness isn’t knowing when to sell.I bought at around 90p per share, and the Lloyds share price is now hovering around 40p. So I’d clearly have been better off had I sold, but how could I have known when?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I like to look forward in my investment thinking. But we have to learn from our mistakes. And, more importantly, looking back can help me decide what to do in the future.I bought Lloyds shares when the banking sector was emerging from the financial crisis, and dividends were just reappearing. Lloyds, along with what was then Royal Bank of Scotland (now NatWest Group) had come through their government bailouts. RBS was about a year behind in getting its dividend back, and I went for Lloyds — in part because I saw significantly less uncertainty. And the Lloyds share price was recovering.But roll on to 2016 and the Brexit referendum. The result shocked me. I really wasn’t expecting it to even be close. Banking shares quickly lost ground, so should I have sold then? Here’s where I definitely made a mistake. I like to follow Warren Buffett’s approach to situations like that. When something rocks one of my companies, I should step back and look at the whole thing afresh.The need to step backThinking about it in terms of my Lloyds, the bank I knew so well, that was my error. I should have abandoned all I knew, and done my analysis from scratch again. Had I done that, would I have sold? Well, I’d have been shaken by the amount of uncertainty the Brexit result had thrown up. I held shares in a strengthening bank operating in a Europe-wide market, with London being the banking centre of the continent. That, the core of the bank’s strength, was thrown away overnight, and yet I sat on a tumbling Lloyds share price and did nothing.We didn’t know what the full fallout of that referendum result would be. We didn’t know what banking rights the UK would be left with. But we surely did know that things would never be the same again. I don’t know if I’d have sold had I approached it properly. But I did make a key mistake of not taking full account of what happened.Latest Lloyds share price crashBut what about the Covid-19 pandemic? Since that took hold, the Lloyds share price has crashed by 30%. So was that another missed selling opportunity? No, I don’t think so. I certainly wouldn’t have been quick enough to sell before the initial crash — and I don’t do panic selling anyway. The Lloyds share price fell more than 30% in a couple of weeks, and slumped to a 50% loss not long after. But it’s recovering.Saying that, the banking sector has changed fundamentally again. And again, that means it’s time to re-evaluate from scratch. I think I’ve done a better job of it this time. And with dividends returning (again), I’m definitely not selling now. “This Stock Could Be Like Buying Amazon in 1997”last_img

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