February 5, 2021

Buying US stocks and starting with Quest Diagnostics and Seneca Foods

As a Swiss citizen, Obermatt CEO Dr. Hermann J. Stern has largely avoided US stocks until now, since non-Americans are also subject to US taxes if they hold US shares above the exemption limit of USD 60,000. But his American wife, Dr. Candace S. Cheng has started to invest her money in US shares. Since she already declares US taxes anyway, she can easily declare her US shares as well.

Candace has occasionally looked over my shoulder over the years, but is now putting together her own investment strategy. She finds the sectors of health, food, electromobility and hydrogen interesting. She identified the first shares with the help of the Obermatt Ranks. She buys Quest Diagnostics, a company that sells health and diagnostic tests, including Coronavirus tests. Candace believes that we will need health tests for a long time to come, even if the pandemic in its current urgency will be over eventually. Moreover, Quest Diagnostics is a very large company in the Obermatt XL category and broadly diversified across a number of different tests servicing a wide range of clients.

The second stock Candace bought is Seneca Foods. The food industry is not exactly in fashion, but we will probably need it for a long time. Especially when people are eating more at home again, Seneca's products could be interesting, especially as it focuses on the healthy varieties such as fruits and vegetables. Seneca is active in the entire value chain, from seed to final production. The company was family-run for three generations and emphasises sustainability. In September, a new CEO joined the board, who has been with the company for a long time. All of this is convincing.

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