Should I Buy Royal Mail Shares?

When asking a question such as Should I Buy Royal Mail Shares? it is important to weigh all the facts up carefully. This article will provide you with information you may need to decide whether to buy Royal Mail shares. Hopefully you should be able to answer the question Should I Buy Royal Mail Shares? by the end of it.

Firstly, let us briefly consider the history of the company. This will at least go some way towards answering the query ‘Should I Buy Royal Mail Shares?’ The Royal Mail started life in 1516, when the then-King Henry VIII commissioned a ‘Master of the Posts’. Over the next 300 years the royal post service gradually expanded, firstly becoming a service open to the public and then to an efficient system of nationwide mail coaches and mail trains ensuring regular delivery throughout the nation. Further enhancements and innovations in the late 19th and early 20th century developed the Royal Mail into the sophisticated system we know today. Hopefully, the answer to Should I Buy Royal Mail Shares? is becoming clearer for you.

Are you still wondering Should I Buy Royal Mail Shares? Between 1994 and 2012 several changes were made to the Royal Mail. It was Michael Heseltine who first proposed that the Royal Mail should be privatised. However, his recommendations were met with disapproval. When the Labour government came to power in 1997 they afforded the Royal Mail greater commercial freedom. The Postal Services Act of 2011 decreed that the government could choose to sell up to 90% of the institution, with the remaining 10% reserved for staff of the Royal Mail. In September 2013 the government made good its promise and made the historical decision to sell, much to the delight of stock brokers worldwide. This is why so many people are asking Should I Buy Royal Mail Shares?

On the surface many might say the answer to the question Should I Buy Royal Mail Shares? is difficult. There certainly does appear to be many reasons to buy Royal Mail shares. After all, Royal Mail is a large, profitable and generally highly efficient organisation. It employs approximately 150,000 people and in 2013 its net revenue was £146 billion. Despite the increasing use of electronic communications, there should still remain a high demand for the delivery of goods, presents and other items in the physical mail. This goes some way to answer the question ‘Should I Buy Royal Mail Shares?’

A word of caution should be interjected here when we ask Should I Buy Royal Mail Shares? The effect of the Royal Mail’s privatisation should be carefully considered before rushing into purchasing shares in the company. As with any financial transaction, losses can exceed deposits, so rather than following the crowd, trust your own judgement when you ask yourself the question Should I Buy Royal Mail Shares?

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