Monthly Archives: May 2021

The “All Swiss Shares” Series Part 1 – Nr. 1-10

Introduction

After the great fun of doing the “All German shares” Series in 2019/2020, It is time to start the new “All Swiss Shares” series in 2021. According to the Swiss Stock Exchange, there are currently 220 Swiss based listed companies, so the series will be a little bit shorter. The reason for choosing Switzerland is that I actually own already two Swiss based companies (Richemont, Zur Rose) and that I think there is an interesting mixture of companies in Switzerland, several of which I have covered over the last 10 years.

Again, mostly for my own entertainment, I will use a random approach in looking at the companies.

One difference to the German series is that I’ll try to better define what I am looking for. In principle, my portfolio comprises three different styles/buckets:

  1. “Long term holdings” – Stocks where I think there is good long term potential. For this group, I require high quality with regard to the business model, leadership and balance sheet
  2. “Value Trades” – Stocks where I think for some specific reasons there is a significant undervaluation that will materialize in a period of up to 3 years. This could be a “sum-of-part” situation, a spin-off, activist involvement or another situation where I think that I can identify the reason for the undervaluation and where I have a different view. Due to the shorter time horizon, the requirements for “quality” are a little bit lower.
  3. “Special situations”  – in my definition, special situations are based on corporate actions (M&A, Squeeze out etc.) where the potential outcomes are clear and the main task is to assess probabilities and an expected value.

 

So now let’s jump into the first 10 stocks. Surprisingly, I found already 4 stocks worth “watching” out of the first batch.

  1. BVZ Holding AG

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Some links

How Solar energy became “insanely cheap”

Interesting deep dive into Nintendo’s strategy

A few insights from Berkie’s annual shareholder meeting

Klement on Investing makes a good case for CO2 certificates

The Amex Black Card looks like a really good deal….if you are rich enough to get it

A very good reminder: Now is the Golden Time for financial scams of all sorts

Good check list on how to avoid Value Traps

 

Panic Journal – Final edition

It is now 14+ months since the “Covid-19 panic” set in and that I started the “Panic Journal” mini series. After season 1 and 4  episodes of Season 2, I think it is now time to close the series. Of course, Covid-19 is not over yet and currently in India the Virus is rampaging as never before.

However for the stock market it seems, the Virus and the pandemic is “last year’s news”. I think there is some small risk that some of the virus mutations could be a problem, on the other hand, the “magic” of the mRNA vaccine seems to be a decent risk mitigation factor.

So looking back, what are the major learnings/surprises for me from a investment perspective ?

  1. Buying the dip has worked again beautifully

A whole generation (or even two generations) of investors now has first hand experience that for the market overall, buying the dip always works. Personally, I have started my first “baby steps” in 1987 and even back then buying into the crash was a good opportunity.

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