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 I 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? I don’t know, and neither do automotive experts. If they did, then they could immediately retire.

Apart from this rather theoretical justification, I also have emotional reasons. When I 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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