question time for a novice, page-9

The so-called down trend that you describe has been evident only for the last year or so, and has paralleled falls in all major world markets.

To answer your first question: the total post-tax return of Argo shares has averaged 13.6%pa over the last ten years. This return is made up of share price growth and dividends. It is possible in some years to achieve a net positive return despite a falling share price, due to dividend payments. however, in most years, Argo's share price rises; and the company pays dividends every year.

You should be careful not to conclude that because ARG's share price has fallen lately, it will continue to fall over the long term. This is almost certainly wrong. I never feel concerned by Argo's SP: if it is high, my holdings go up in value; if it is low, I have the opportunity to buy some more shares at an attractive price. If falling share prices concern you, then perhaps shares are not an appropriate investment as far as your risk tolerance is concerned.

"like anything why pay more than you have to at entry, or why hold something that on the surface is loosing value if you where to sell it."

Nobody should buy ARG shares (or arguably any shares) if planning to sell them in the short term. None of us can predict when is the best time to buy, which is why I advocate gradual accumulation of high-quality shares. ARG is an excellent place to start.

Hope that helps.

itb08