Today, the Swiss telecommunications company Swisscom showed up in Dr. Stern's personal top 10 list of the best companies in the DACH region. This surprised him, as 51% of Swisscom stocks belong to the Swiss Confederation – which is why they are also called "federal bonds" – and should, therefore, be expensive.
What they shouldn’t be is cheap "value" stocks. Because secure stocks with good dividends are in demand.
Swisscom is definitely secure because the federal government, as the main owner, demands good dividends and thus protects Swisscom's business model as long as it works. In other words: Swisscom investors are backed by the Swiss Confederation.
And therefore have secure shares in their portfolios.
It’s hard to understand why these stocks are suddenly cheap. The experts from "Finanz und Wirtschaft" and "Cash" don’t understand it and recommend buying the stocks.
Dr. Stern can only think of one reason against that: If you already own a large number of Swiss assets. This doesn’t apply to myself, my assets are mainly foreign ones because Swiss stocks as a whole are expensive.
The investment, therefore, makes sense for him. Obermatt CEO is buying 10 shares of Swisscom for a total of around USD 4,700, which completes his third portfolio of USD 100,000.
This took him over one year because he decided at the start of 2017 that he will only invest slowly since a correction of the stock market is likely and he wants to have money left to invest once the prices fall.
Dr. Stern will use the same strategy for his fourth portfolio, which he wants to invest in 2018-2019.