April 22, 2016

After BMW - Stern buys what’s contrary: Peugeot

Why is BMW the opposite of Peugeot? Because BMW has a very different strategy. While the BMW ads are all about "driving pleasure", Peugeot goes a different route and advertises "travel pleasure" instead. Not quite the same, as Obermatt CEO Dr. Hermann J. Stern will explain today.

Peugeot just announced that they will launch a new car-sharing service in the US. This approach is in stark contrast to BMW, who are focusing entirely on delivering a great driving experience for the person behind the wheel instead of creating a mode of transport for people who don’t own a car.

For this reason, buying Peugeot stock now (April 15, 2016), right after having bought BMW stock last week, could be seen as a special form of diversification. It’s a diversification of business strategies. What strategy will succeed? Dr. Stern doesn't know, and neither do automotive experts. If they did, then they could immediately retire.

Apart from this rather theoretical justification, he also has emotional reasons. When he bought BMW last week, someone mentioned that they are a happy Peugeot driver. Coincidence? Perhaps, but still a good reason to buy a stock that is ranked first on Obermatt’s latest Top 10 stocks of France.

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