For once, Dr. Stern is not going strictly by the Obermatt method. Admittedly, the stock of Meyer Burger is ranked no. 1 on the Swiss Performance Index for December 3, 2015. However, there are also question marks, like its relatively poor stock values that only result in a good value rank when seen as a whole. The safety of the stock is also relatively questionable in view of the financial figures, although in this case, that’s not particularly disturbing if you are – like Dr. Hermann Stern – somewhat familiar with the history of Meyer Burger.
Why does he invest in Meyer Burger stock in spite of these objections? Because he knows the product and finds it promising. Along with the financial analysis, that’s a very good reason to invest in a company. He is very familiar with this company as they are one of our long-time Obermatt Bonus Index clients (disclosure: Obermatt currently still receives license fees from Meyer Burger). As a future shareholder, he sees the use of the Obermatt Bonus Index as a good sign of an owner-managed team culture that isn’t afraid of comparisons with the competition and takes a business approach to the market.
Meyer Burger is a technology company with great performance expectations for the future. Companies like this can rarely be reliably evaluated through the Obermatt Method, which is based on financial facts. But you can still invest in this type of company if you heed the rule of diversification. Meyer Burger is the 13th stock in Dr. Stern's portfolio. In other words, it makes up only 1/13 of his overall assets. Such a modest percentage makes it’s possible to also invest in highly attractive companies where it’s not yet clear whether the future will turn out as hoped.