The European steel industry has hit rock bottom. That makes its stocks cheap – and Dr. Stern, in the fashion of Warren Buffet – curious. That’s why he checked the Obermatt rankings for European raw material stocks. The result? The Norsk Hydro stock has excellent rankings.
The company from Norway produces aluminum, a material that has many applications. Teslas, for instance, are made completely from aluminum, just like most electric cars. It’s lighter and harder than steel (and for this reason, as some Tesla drivers may know, more expensive to repair).
However, aluminum is also more expensive because producing it requires huge amounts of energy. Norsk Hydro is the second-largest energy consumer in Europe. That’s why the company has secured wind energy from the North Sea for the next 30 years. All of the energy Norsk Hydro uses comes from renewable energy sources.
Dr. Stern is convinced – if only for the reason that the value rank is 88 and that the company shows excellent growth and secure financing. He's buying 1,000 shares of Norsk Hydro. Because he believes in aluminum, electromobility and wind energy.