This blog posting represents the views of the author, David Fosberry. Those opinions may change over time. They do not constitute an expert legal or financial opinion.
If you have comments on this blog posting, please email me .
The Opinion Blog is organised by threads, so each post is identified by a thread number ("Major" index) and a post number ("Minor" index). If you want to view the index of blogs, click here to download it as an Excel spreadsheet.
Click here to see the whole Opinion Blog.
To view, save, share or refer to a particular blog post, use the link in that post (below/right, where it says "Show only this post").
Posted on 26th July 2017
|Show only this post|
Show all posts in this thread.
This story on the BBC reports that BHP Billiton shareholders are suing BHP Billiton. They are doing this to recover their losses due to the slide in share prices (around 22%) after the dam collapse at one of the company's mines in Brazil in 2015.
The dam failure at the Samarco mine (jointly owned by BHP and Vale, a Brazilian company) killed 19 people and led to Brazil's largest ever environmental disaster (supposedly - forest clearance is arguably Brazil's worst environmental catastrophe). Now shareholders are suing to recover lost shareholder value.
There are, however, several things wrong with this picture.
Owning shares is not some children's game, where you make money if everything goes well, but if something goes wrong you will be bailed out by the courts or a government. Is is a game with potential rich rewords, but significant risks, and also with responsibilities. The power mostly lies with the big shareholders, not the small hobby investors, but these large shareholders are precisely who is behind this lawsuit.
Time to either get out of investing in shares, or man-up and face the consequences.