June 17, 2016

Airbus is a no-brainer

There are many small companies among today’s Top 10 List of French All Stocks Index (CAC All). That’s not unusual because the more companies there are in the index, the more likely it will be to see smaller companies and their stocks on the Top 10 List.

Typically, we avoid stocks from small companies because they are perceived to be too risky for passive investors. We are drawn to stocks from large companies because they have large pools of executives and directors and a wider stock investor base.

They all work full-time to increase their share price and thus creating a greater benefit for passive investors like us. Let’s take advantage of that fact and get better stock returns without all the work.

Airbus - a large company in the Obermatt size class XXL - is currently number 10 on our Obermatt list. Fortunately, we don’t have to think much more here. If the numbers are all green on obermatt.com, we can buy the company’s stock for the simple reason that Europe will keep its airplane manufacturing for the foreseeable future.

It’s almost like investing in government bonds. That doesn’t mean the stock is fool-proof and we won’t lose any money. Rather, it means that the likelihood of continued and increased returns is high.

We buy the stocks we discuss and openly publish the returns of our portfolio. That's how much we believe in our stock research. Subscribe to the top 10 stocks for 100 markets conveniently by e-mail.

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