June 7, 2019

Wood, sustainability and a better world - UPM from Finland



Children take to the streets instead of class, dishes are made from old coffee grounds - a deep environmental awareness has been changing the world for some time now. Finally! The desire for sustainability also changes the economy. Because of this, there is enormous potential for your investments.

By chance, thanks to our Obermatt Top 10 list for Finland, I came across a company whose sustainability surprised me. Its name is UPM. The company comes from the forestry industry. UPM's mission is to replace fossil fuels with renewable raw materials. In addition to biofuels, UPM is developing sustainable packaging materials and everyday items.

At the same time, UPM has excellent Obermatt ranks: The Value Rank is 68 points, good growth with 57 points and enormous safety with 89 points. Biofuels, packaging, other wood products including paper: These are many household and everyday items. In other words, products for which the demand will always remain high. Good for business, good for your investment.

For further assessment, you can also take a look at what the management actually has to say. The CEO keynote is often the only place where information about the company's strategy and future can be found. Unfortunately, most of these keynotes are dead boring. Either financial data is given (which Obermatt will analyze anyway) or the speech consists of empty phrases: More revenue, more profits, and increased customer value would like to be achieved. Sure, which company doesn't want that?!

It's different at UPM. The CEO is very concrete. For him, a future beyond fossil fuels is at the heart of UPM's expansion. The spearheads for company growth are clearly defined: High-quality fibers, special packaging materials, and molecular organic products should pave the way for success. Management is confident that consumer preferences will change in the coming decades. New consumers in emerging economies will create significant new demand. And these consumers will also set a new benchmark for all companies when it comes to responsibility and integrity.

For me, this makes a lot of sense. In addition, there are the excellent Obermatt ranks and an interesting future. What more do you need? My decision is final: I will buy the UPM share!



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