The Obermatt Top 10 stocks for the provided indexes didn’t inspire Dr. Hermann Stern today. So he had a look at the Sound Incentives Top 10 list. Sound Incentives is a group of stocks where the executive incentive system makes sense. On January 15, we calculated the best stocks in the mid-sized European companies with sound incentive systems.
There are many interesting investment options on the combined strategy that he typically scans first because it finds stocks with good ratings in all categories.
Dr. Stern decided against Peugeot because he doesn’t like French cars. As a matter of fact, he dislikes most combustion engine cars because they are based on a technology that is over one century old. They are loud and slow. OK, he agrees that they work. But there is not much appeal besides reliability. He thinks the future is electric (the technology is even more proven). "Who wants to board a diesel-powered train anymore?". Nobody. They are loud and slow.
Dr. Stern thinks people will soon realize the better performance of electric cars; and they will appreciate their better style, too. That's why he opted for Leoni, a German automotive supplier that produces a lot of electrical equipment for cars. He may be wrong to assume that Leoni will profit from the electric car boom he expects to happen, but they are definitely cheap if you look at their value rating today compared to one and two years ago.
With Leoni, Dr. Stern is exposed to the German car industry in a way that is more or less independent of the automotive producers. He thinks that's good because the German car industry has good value since the VW exhaust scandal lowered the prices across the board.