Recent Investments December 2018

Hello guys, I finally put the investment trigger again and I made two investments this month. I especially took advantage of the currently very cheap looking german stock market. The stock was already in my portfolio, but now I purchased a couple of new share to almost 2/3 of the price I initially sold it. The second stock is a large German automobile company, which is at the moment super cheap but also will face some problems in the future.

Investment I

BASF

Based in Germany, BASF is the world’s largest chemical company, with products spanning the full spectrum of commodities to specialties. In addition, the company is a strong player in agricultural crop protection and has a sizable exploration and production business in oil and gas. Given its sheer size, BASF has a top-three market position in 70% of its businesses. Around half of the sales are generated in Europe, while North America and Asia each account for about 20% of sales.

As I said BASF was already in my Portfolio, but this time the price was too tempting and I think it is at the moment undervalued. It is yielding at almost 5.50% and was a couple of days ago at its 5 year low. So I bought 30 shares at a price of 58.14 EUR. This investment will add 93.00 EUR in dividends, based an annual dividend of 3.10 EUR, to my dividend income (before tax). The next year expected dividend will be at around 3.20 EUR. The average potential upside on the current price is 28.82%.

Investment II

Daimler AG

Based in Stuttgart, Germany, Daimler makers Mercedes-Benz and Smart cars, commercial trucks and vans, and buses. Brands include Mercedes-Benz, Freightliner, Western Star, Fuso, Setra, and Orion. Daimler Financial Services provides the company’s dealers and its customers with vehicle financing. Daimler owns 3.1% each of Renault and Nissan, while Renault owns 3.1% of Daimler. Daimler also owns 15% of Russian truck maker Kamaz. Li Shufu, chairman of Chinese automaker Geely Automobile, owns 10% of Daimler. Other major shareholders include Kuwait Investment Authority at 7%, BlackRock at 6%, Renault-Nissan Alliance at 3%, and Harris Associates at 3%

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Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in ...

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