All Swiss Stocks – Final edition

Condensing the watchlist and some general remarks:

As the ultimate climax (or anticlimax), my readers will find below a table with all Swiss stocks that I identified in round 1 as worth to “watch” including a second flag if they made it into my 20 stock “priority” watch list. Those who manage to read to the very end will also find my next target country for the “All Stocks” series 😉

Overall, I prioritized companies that are already in my portfolio or have the chance to become a member of my high quality “GARP” bucket at some point in time in the future or undergo a potentially value enhancing transformation process (ABB, Metall Zug, Holcim).

I am in general very positively surprised, both on the quality of the businesses that I have seen as well as the quality of the reporting of many companies. I always thought that Switzerland is mostly about banking and tax evasion.

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Some Links

The best definition/explanation of Bitcoin I have read so far (Spoiler: Bitcoin is Art)

Tyler Cowen on Magnus Carlsen and the future of Chess 

Highly recommended: Very insightful analysis why Casper (Online Mattresses) didn’t make it as a public company

A nice pitch for Nintendo as an investment

Nice review of “The Delusions of Crowds”, a new book by William Bernstein

Monevator on the end of P2P Lending (in the UK)

A very critical but equally fascinating interview with one of the Cofounders of the ConstitutionDAO

 

All Swiss shares part 19 – Nr. 201-213

Finally I made it, below you find short summaries of the last 13 randomly selected Swiss stocks quoted on the SIX, three of them are potentially worth watching.

Just one remark: There are many smaller Swiss stocks quoted outside SIX, but as I am not able to trade them via my brokerage accounts, I will omit them in this series.

Overall, I have identified 45 stocks out of these 213 as potentially worth watching. The final post of this series will condense this to maybe 15-20 stocks that I think I can handle going forward.

201. CS Group

CS Group has a market cap od 23.6 bn CHF and clearly has seen better days. They managed to be part of all the big blow ups in the last few years, from Greensill to Bill Hwang or Wirecard, not to mention ugly infights of the previous management.

So it is not a surprise that the chart looks ugly and the market cap is less than 50% of arch rival UBS:

CS

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Panic Journal – “It ain’t over ’til it’s over”

In May this year, I had (prematurely) ended my Panic Journal series with the following, slightly too optimistic conclusion:

As mentioned above, despite some remaining risks, the peak of the Pandemic seems to be behind us.

Looking ahead however, I do think that it is risky to think that now all problems will fall away and we will have a multi year super boom that will lead to yet another big general stock market party.

I don’t predict a crash either, as the Pandemic has clearly shown me that I know a lot less about (current) markets than I thought. So the best thing to do is to continue trying to learn what is going on and not trying to make decisions based solely on experiences from the past.

Now, seven months later, many of us are (again) sitting in their home offices and facing the 4th wave  plus  potentially a more dangerous variant of the Virus.

Again, vacation plans have been killed and the discussion for or against vaccination resembles religious wars in medieval times. Time for the “Panic Journal” again. As before, don’t expect any actionable advise here, this posts are more like a self therapy.

The Virus

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All Swiss Shares part 18 – Nr. 191-200

With 200 out of 215 stocks now covered, this will be the penultimate post in this series covering single stocks. My goal is to conclude this in 2021 and it almost looks like I’ll succeed.

This time, two stocks look like worth watching further. At the very end of this series I will need to consolidate my watchlist and concentrate on the top 20 (or so) stocks to watch going forward.

191. Temenos

Temenos is a 9 bn CHF market cap software company that specializes on Software for banks and financial institutions. Looking at the chart one can see a very nice run up until 2018, since then the stock trades sideways under significant volatility:

Temenos

The company as such is highly profitable, with EBIT margins of > 30%. In 2020, sales declined by -8%, but EPS remained more or less constant. As many other “traditional” Software companies, Temenos seems to be transitioning right now from a licence + maintenance model to a SaaS model.

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With 200 out of 215 stocks now covered, this will be the penultimate post in this series covering single stocks. My goal is to conclude this in 2021 and it almost looks like I’ll succeed.

This time, two stocks look like worth watching further. At the very end of this series I will need to consolidate my watchlist and concentrate on the top 20 (or so) stocks to watch going forward.

191. Temenos

Temenos is a 9 bn CHF market cap software company that specializes on Software for banks and financial institutions. Looking at the chart one can see a very nice run up until 2018, since then the stock trades sideways under significant volatility:

Temenos

The company as such is highly profitable, with EBIT margins of > 30%. In 2020, sales declined by -8%, but EPS remained more or less constant. As many other “traditional” Software companies, Temenos seems to be transitioning right now from a licence + maintenance model to a SaaS model.

Read more

Some links

Greenwood Q3 letter on short selling and owner-operated companies

An interesting intro into the fertilizer market including investment opportunities

The 5 favorite books that Bill Gates read in 2021

Annual portfolio update of Bull, Bear & Value including a few interesting Israelian stocks

Great deep dive into payment company Adyen

Q3 letter of Hayden Capital with interesting thoughts on “next Gen” consumer behaviour

WaPo article on how chess is evolving into an E-sports discipline (unfortunately no mentioning of Play Magnus)

Book review: “Billion Dollar Whale”

Update: Unfortunately the first version of this post contained (too) many spelling errors. I released it too early and somehow spellchecking does not work within the WordPress editor. Apologies.

whale

In my opinion, any investor can learn a lot about any book about financial scandals. Maybe even more compared to most “how to invest” books.

“Billion Dollar Whale” is no exception. This book tells the story of a young Malaysian guy called Jho Low who managed to steal around 5 bn USD from the Malaysian Sovereign Wealth Fund 1MDB.

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Some links

Ever wondered why Netflix streams better then others on your Device ? OpenConnect may be the answer.

Short writeup on the GoreStreet Energy Storage Fund

A very good artice on how the current “meme markets” are functioning

Swen Lorenz likes Petershill partners, the IPO/spin-off from Goldman Sachs

Part 4 of an interesting deep dive into Sea Ltd, a South East Asian Tech conglomerate

Doordash’s deck to justify the Wolt acquisition (My take: very thin…)

Stratechery on Unity and the attraction of “faceless platforms”

All Swiss Stocks part 17 – Nr. 180-190

No bonus this time, only 10 Stocks in this post. Spoiler: none of the 10 stocks went onto the watch list.

Another interesting story that caught my attention is this one: The Swiss Exchange finally opens up to SPAC listings. It’s about time to catch the last wave of this hype. The Swiss seem to be unhappy with the large share of (expensive) quality companies listed right now.

181. Valiant AG

Valiant is a 1,4 bn CHF market cap Bank Holding company. As with all other Swiss banks, the company seems to stagnate since a long time. “pass”.

182. Galenica AG

Galenica is a 3,4 bn CHF market cap company that calls itself the “leading Swiss Healthcae Platform”. The company IPOes in april 2017 and has performed decently since then:

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Some links

“NegatIve Visualisation” is an interesting exercise for any investor

Roger Lowenstein on US Inflation

A very interesting HBR long read on how NFTs can create Value

Scientists have discovered on how to turn Ammonia into electricity without toxic by products

Some interesting notes on Assytem from France

This week, General Electric, Johnson & Johnson and Toshiba announced to split themselves into smaller entities

Prof. Damodaran with a valuation update on Tesla

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