Stern buys Siemens because of 2020 strategy not Volkswagen



Germany currently has a number of favorable stocks, especially, those from the automobile industry. All German top brands like Volkswagen, Daimler and BMW are on the Obermatt List of Top 10 Value Stocks for November 27, 2015. However, there’s a pitfall here for investors, since the emissions scandal is probably not yet reflected in financial reports. You should therefore use caution: don’t look at automotive stocks until the exhaust smoke has cleared.

Siemens is also on the DAX Top 10 list. While the growth value for Siemens is below average, it appears that the company just announced a new strategy that includes growth incentives for the board. Siemens bosses are being paid for growth! This is of central importance, since companies with compensation systems that don’t include growth incentives perform worse, as Obermatt has recently shown for the Swiss market. For this reason, I decided to buy Siemens stock for my long-term-oriented portfolio of European stocks.