Once again, it’s time to make another investment. Even those who don’t like investing and think the crash is just around the corner should still invest regularly because regular investors have the best chance at success in the long run.
We are now starting our third portfolio. As with our first two portfolios, our plan is to invest 100,000 Swiss francs in about twenty stocks over the summer. We want to get off to a good start and stick to our investment philosophy:
That's what safe investing is all about."
Those who enter the market slowly and incrementally will profit from rising prices because the value of the portfolio increases, while only suffering minor setbacks if prices fall because there will still be money left to buy stocks at those lower prices.
We’re not just talking about it, we’re doing it as well. We open our new portfolio at the discount bank Strateo because they have unique conditions and their online trading app is an effective one. (Disclosure: Obermatt has no commercial relationship with Strateo.)
We rely upon the Obermatt Top 10 lists for our stock selections, and we tend to invest in underperforming companies, which should pay off in the long term.
Currently, the Top 10 list is focused on "stocks with sound incentives in Southern and Eastern Europe". In these markets, the stocks with rip-off executive compensation are excluded and they only contain stocks from sectors in which the incentives for the executives coincide with the interests of the shareholders.
Obermatt CEO Dr. Hermann Stern is particularly interested in two energy companies, Prysmian (Italy) and Gamesa (Spain) because Southern Europe is particularly well suited for renewable energies, and that’s something he strongly believes in. Why spend expensive money on oil when you get the wind and the sun free?
Ultimately, Dr. Stern narrows his choice to Gamesa because Prysmian also has exposure to oil-related activities. Whereas Gamesa is primarily a wind energy company, which he thinks makes a lot of sense.