Meyer Burger, Because Stern Knows Them
Channel: Investing made easy
Date: 2015-12-04

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For once, Obermatt’s managing director Dr. Hermann J. Stern is not going strictly by the Obermatt method. Meyer Burger’s stock is admittedly ranked No. 1 on the Swiss Performance Index for December 3, 2015. But there are also question marks, like its relatively poor stock values that only result in a good value rank when seen as a whole. The safety of the stock is also relatively questionable in view of the financial figures, although in this case that’s not particularly disturbing if, like Dr. Stern, you’re somewhat familiar with the history of Meyer Burger.

Why does Obermatt’s chief executive invest in Meyer Burger stock in spite of these objections? Because he knows the product and finds it to be promising. Along with the financial analysis, that’s a very good reason to invest in a company. Dr. Stern is very familiar with this company as one of his long-time Obermatt Bonus Index clients (disclosure: Obermatt currently still receives license fees from Meyer Burger). As a future shareholder, Stern sees the use of the Obermatt Bonus Index as a good sign of an owner-managed team culture that doesn’t fear comparisons with the competition and takes a business approach to the market. 

Meyer-Burger is a technology company with great performance expectations for the future. Companies like this can rarely be reliably evaluated through the Obermatt Method, which is based on financial facts. But you can still invest in this type of company if you heed the rule of diversification. Meyer Burger is the thirteenth stock in Dr. Stern’s portfolio. In other words, it makes up only 1/13 of his portfolio. Such a modest percentage of the portfolio makes it’s possible to also invest in highly attractive companies where it’s not yet clear whether the future will turn out as hoped. 

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