Xela Finance

Usually, people spend money at Wetherspoons because you know, cheap drinks. But how about Wetherspoons pay you instead.

Each time I go out to Wetherspoons I feel content in knowing that at the end of the day i’ll be getting that money back. Why, because I own 60 shares, I know I’m going to get a dividend, and capital appreciation. Especially at the current time of writing JD Wetherspoon is trading at £7.74 per share this is less than half what it was trading out before COVID which was around £15. This means that if you buy around this low price and say in a years time we’ll be done with COVID, you’ll double your money if not a bit more. Thats 100% in a time where interest rates on savings accounts are 0.1%. That means this potential investment is 1000x more profitable than your savings account. Think about how many pints that could buy you.

The black circle represents the pre COVID levels. The red circle represents when lockdown was announced in the UK and the blue circle is where its at now. As you can see between the red and blue circle there have been some spikes and that is because between those two circles the government have been loosening restrictions, which lead to an increase in share price.

On the screenshot you can see the company has fallen about 20%, personally I am not concerned about this. It fell because it is the first time they have not posted a profit in something like 40 quarters, and secondly because there are numerous locations in the UK going back into lockdown. I believe that once there is a vaccine or COVID cases are controllable. This stock will gradually go back to where it was before COVID in 12-24 months.

Remember this is not advice, these are just my thoughts, only invest if you want to and are comfortable with the risk involved.