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๐“๐ก๐ž ๐’๐ฐ๐š๐ญ๐œ๐ก ๐†๐ซ๐จ๐ฎ๐ฉ ๐Ÿ๐ŸŽ๐Ÿ๐Ÿ


This post is about the Swatch company, and more importantly, how you can make your own ๐€๐ค๐ญ๐ข๐จ๐งรค๐ซ๐ฌ๐ฎ๐ก๐ซ ๐ž๐ซ๐ก๐š๐ฅ๐ญ๐ž๐ง in the future.


Everything that makes sense without tables you can read directly here. You can find my graphics and tables here:


https://www.valueinvestments.ch/the-swatch-group-ag-sachdividende-2022


The Swatch Group is an internationally known company and also fits perfectly into the ๐’๐ž๐ซ๐ข๐ž รผ๐›๐ž๐ซ ๐’๐š๐œ๐ก๐๐ข๐ฏ๐ข๐๐ž๐ง๐๐ž๐ง. Because the shareholders of The Swatch Group Ltd will receive ๐ฃ๐ž๐๐ž๐ฌ ๐‰๐š๐ก๐ซ ๐ž๐ข๐ง๐ž ๐”๐ก๐ซ! Of course, this is not a watch of the caliber of ๐Ž๐ฆ๐ž๐ ๐š - the drawing card among the brands of the Swatch Group. But still, the watch is a nice gesture, which shareholders can look forward to.


As in the previous posts on Jungfraubahn Holding AG, CALIDA AG and Bell Food Group AG, I will introduce you to the company a bit. Also ๐š๐ฎ๐ฌ๐ ๐ž๐ฐรค๐ก๐ฅ๐ญ๐ž ๐…๐ข๐ง๐š๐ง๐ณ๐ค๐ž๐ง๐ง๐ณ๐š๐ก๐ฅ๐ž๐ง I do not want to withhold from you - just as I do in the ๐•๐ž๐ซ๐ฆรถ๐ ๐ž๐ง๐ฌ๐ฏ๐ž๐ซ๐ฐ๐š๐ฅ๐ญ๐ฎ๐ง๐  before I invest in a company.



๐ƒ๐š๐ฌ ๐Œ๐š๐ซ๐ค๐ž๐ง๐ฎ๐ง๐ข๐ฏ๐ž๐ซ๐ฌ๐ฎ๐ฆ ๐๐ž๐ซ ๐’๐ฐ๐š๐ญ๐œ๐ก ๐†๐ซ๐จ๐ฎ๐ฉ


The Swatch brand is one of the ๐›๐ž๐ค๐š๐ง๐ง๐ญ๐ž๐ฌ๐ญ๐ž๐ง ๐”๐ก๐ซ๐ž๐ง๐ฆ๐š๐ซ๐ค๐ž๐ง ๐๐ž๐ซ ๐’๐œ๐ก๐ฐ๐ž๐ข๐ณ along with Rolex. Less well known, however, is the entire watch ๐”๐ง๐ข๐ฏ๐ž๐ซ๐ฌ๐ฎ๐ฆ that the Swatch Group unites under itself.


The three ๐ฎ๐ฆ๐ฌ๐š๐ญ๐ณ๐ฌ๐ญรค๐ซ๐ค๐ฌ๐ญ๐ž๐ง ๐Œ๐š๐ซ๐ค๐ž๐ง of Swatch Group for 2021 were:


-> ๐Ž๐ฆ๐ž๐ ๐š: 2.2 billion Swiss francs - No. 3 after Rolex (1) and Cartier (2).

-> ๐‹๐จ๐ง๐ ๐ข๐ง๐ž๐ฌ: 1.5 billion Swiss francs - the No. 5 after Audemars Piguet (4)

-> ๐“๐ˆ๐’๐’๐Ž๐“: 1 billion Swiss francs - the No. 8 after Patek Philippe (6) and Richard Mille (7).


As Swatch Group does not publish sales per brand, the figures are based on estimates from studies by Morgan Stanley and the consulting firm LuxeConsult.


The ๐”๐ฆ๐ฌ๐š๐ญ๐ณ of the entire Swatch Group can of course be found in the annual report. In 2021, The Swatch Group could generate net sales of ๐Ÿ•.๐Ÿ‘ ๐Œ๐ข๐ฅ๐ฅ๐ข๐š๐ซ๐๐ž๐ง ๐’๐œ๐ก๐ฐ๐ž๐ข๐ณ๐ž๐ซ๐Ÿ๐ซ๐š๐ง๐ค๐ž๐ง.



๐ƒ๐ข๐ž ๐€๐ค๐ญ๐ข๐ž๐ง ๐๐ž๐ซ ๐’๐ฐ๐š๐ญ๐œ๐ก ๐†๐ซ๐ฎ๐ฉ๐ฉ๐ž


Swatch Group shares ๐ฌ๐ญรผ๐ซ๐ณ๐ญ๐ž๐ง ๐€๐ง๐Ÿ๐š๐ง๐  ๐Ÿ๐ŸŽ๐Ÿ๐ŸŽ ๐ข๐ง ๐๐ž๐ง ๐Š๐ž๐ฅ๐ฅ๐ž๐ซ also. On January 17, 2020, Swatch registered shares (ISIN CH0012255144) were still trading on the stock exchange for 51.80 Swiss francs. Two months later, on March 16, 2020, Swatch registered shares were trading for only ๐ฅรค๐ฉ๐ฉ๐ข๐ฌ๐œ๐ก๐ž ๐Ÿ‘๐Ÿ.๐Ÿ๐ŸŽ ๐’๐œ๐ก๐ฐ๐ž๐ข๐ณ๐ž๐ซ๐Ÿ๐ซ๐š๐ง๐ค๐ž๐ง. A proud 40% less than in mid-January. Swatch shares then set off on a ๐›๐ž๐ž๐ข๐ง๐๐ซ๐ฎ๐œ๐ค๐ž๐ง๐๐ž๐ง ๐„๐ซ๐ก๐จ๐ฅ๐ฎ๐ง๐ . At the ๐‡๐จ๐œ๐ก on June 8, 2021, the closing price was an astonishing ๐Ÿ”๐Ÿ’.๐Ÿ๐ŸŽ ๐’๐œ๐ก๐ฐ๐ž๐ข๐ณ๐ž๐ซ๐Ÿ๐ซ๐š๐ง๐ค๐ž๐ง - that is, ๐ฎ๐ง๐ ๐ฅ๐š๐ฎ๐›๐ฅ๐ข๐œ๐ก๐ž ๐Ÿ๐ŸŽ๐Ÿ” % above the March 2020 low.


However, the recovery did not last long. In 2022, the share price of Swatch shares fell significantly again. Today it stands at around 45 Swiss francs. In the last two years from the beginning of 2020 to the beginning of 2022, the Swatch share was hardly able to recover and instead strained the nerves of shareholders to the utmost. Compared to the last peak price of 64.10 Swiss francs, it is now ๐ซ๐ฎ๐ง๐ ๐Ÿ‘๐ŸŽ % ๐ รผ๐ง๐ฌ๐ญ๐ข๐ ๐ž๐ซ ๐ ๐ž๐ก๐š๐ง๐๐ž๐ฅ๐ญ. Swatch shares have always been highly cyclical and high price fluctuations are simply a part of life for Swatch Group shareholders. One should do as the ๐…๐š๐ฆ๐ข๐ฅ๐ข๐ž ๐‡๐š๐ฒ๐ž๐ค - which holds a large part of the shares - and not worry too much about the ๐‹๐š๐ฎ๐ง๐ž๐ง ๐๐ž๐ซ ๐รถ๐ซ๐ฌ๐ž if one holds Swatch shares for the long term.


As an asset manager with a ๐•๐š๐ฅ๐ฎ๐ž- & ๐Œ๐จ๐ฆ๐ž๐ง๐ญ๐ฎ๐ฆ-๐’๐ญ๐ซ๐š๐ญ๐ž๐ ๐ข๐ž, I try to buy companies ๐ รผ๐ง๐ฌ๐ญ๐ข๐  that have a ๐ก๐จ๐ก๐ž๐ฌ ๐๐ซ๐ž๐ข๐ฌ๐ฆ๐จ๐ฆ๐ž๐ง๐ญ๐ฎ๐ฆ. Swatch has become quite a bit cheaper, but the momentum is currently still going in an unsound direction - so it needs ๐๐ž๐ซ๐ฏ๐ž๐ง ๐ฐ๐ข๐ž ๐ƒ๐ซ๐š๐ก๐ญ๐ฌ๐ž๐ข๐ฅ๐ž here.


In the ๐งรค๐œ๐ก๐ฌ๐ญ๐ž๐ง ๐€๐›๐ฌ๐œ๐ก๐ง๐ข๐ญ๐ญ, I come to talk about Swatch's ๐€๐ค๐ญ๐ข๐จ๐งรค๐ซ๐ฌ๐ฎ๐ก๐ซ and how I fared with Swatch Group's stock.



๐€๐ค๐ญ๐ข๐ž๐ง, ๐ƒ๐ข๐ฏ๐ข๐๐ž๐ง๐๐ž๐ง & ๐™๐ž๐ข๐ญ๐ฆ๐ž๐ฌ๐ฌ๐ž๐ซ


My ๐€๐œ๐ก๐ญ๐ž๐ซ๐›๐š๐ก๐ง๐Ÿ๐š๐ก๐ซ๐ญ with Swatch name share started about 2 years ago on August 31, 2020, I ๐›๐ž๐ณ๐š๐ก๐ฅ๐ญ๐ž ๐Ÿ‘๐Ÿ“.๐Ÿ”๐Ÿ’ ๐’๐œ๐ก๐ฐ๐ž๐ข๐ณ๐ž๐ซ๐Ÿ๐ซ๐š๐ง๐ค๐ž๐ง - that is, already 14.60% more than one would have paid at the lowest price in March 2020. In hindsight, I still had some ๐†๐ฅรผ๐œ๐ค with the entry price until now: it could have been some ๐ฌ๐œ๐ก๐ฅ๐ข๐ฆ๐ฆ๐ž๐ซ ๐ฎ๐ง๐ ๐ญ๐ž๐ฎ๐ซ๐ž๐ซ - if I had entered at the high of 64.10 Swiss francs. Plus, I would not have received the shareholder clock in May 2021 - it would have been a ๐ƒ๐ž๐ฌ๐š๐ฌ๐ญ๐ž๐ซ ๐š๐ฎ๐Ÿ ๐ ๐š๐ง๐ณ๐ž๐ซ ๐‹๐ข๐ง๐ข๐ž.


๐™๐ฎ๐ฆ ๐†๐ฅรผ๐œ๐ค ๐ค๐š๐ฆ ๐š๐ฅ๐ฅ๐ž๐ฌ ๐š๐ง๐๐ž๐ซ๐ฌ: So I paid the 35.64 Swiss francs in August 2020 and received the ๐ก๐ž๐ข๐ฌ๐ฌ ๐›๐ž๐ ๐ž๐ก๐ซ๐ญ๐ž ๐€๐ค๐ญ๐ข๐จ๐งรค๐ซ๐ฌ๐ฎ๐ก๐ซ in 2021 and 2022. Now I asked myself what the watch could bring in cash besides the sentimental value? That's not easy to quantify - ๐ฏ๐ž๐ซ๐ ๐ฅ๐ž๐ข๐œ๐ก๐›๐š๐ซ๐ž ๐’๐ฐ๐š๐ญ๐œ๐ก ๐”๐ก๐ซ๐ž๐ง can be bought for over 100,- Swiss francs. But for this price I will never get the watch sold myself. More realistic here are comparable offers on auction platforms - there it is usually offered between 30.- and 60.- Swiss francs. ๐Ÿ‘๐ŸŽ.- ๐’๐œ๐ก๐ฐ๐ž๐ข๐ณ๐ž๐ซ๐Ÿ๐ซ๐š๐ง๐ค๐ž๐ง seems to be a realizable value to me and that's why I have included it in the table of my milk book calculation below.


๐™๐ฎ๐ฌรค๐ญ๐ณ๐ฅ๐ข๐œ๐ก to shareholder watches were paid out in both 2021 and 2022 ๐ƒ๐ข๐ฏ๐ข๐๐ž๐ง๐๐ž๐ง of CHF 0.70 and 1.10 Swiss francs per share. This was despite difficult business conditions due to Corona, war and sanctions in important sales markets of Swatch.


Unlike CALIDA - where you only get your pajamas if you buy 20 shares - Swatch ๐ง๐ฎ๐ซ ๐ž๐ข๐ง๐ž ๐ž๐ข๐ง๐ณ๐ข๐ ๐ž ๐๐š๐ฆ๐ž๐ง๐š๐ค๐ญ๐ข๐ž or a bearer share is required. But the bearer share is almost 5.5 times more expensive and it is more troublesome to get the watch: You can't just register in a name register, you have to send a holding confirmation from the custodian bank to Swatch. In return, the dividend is of course 5.5 times higher.



๐“๐ข๐ฉ๐ฉ๐ฌ, ๐ฐ๐ข๐ž ๐ข๐ก๐ซ ๐š๐ฆ ๐ž๐ข๐ง๐Ÿ๐š๐œ๐ก๐ฌ๐ญ๐ž๐ง ๐ณ๐ฎ๐ซ ๐€๐ค๐ญ๐ข๐จ๐งรค๐ซ๐ฌ๐ฎ๐ก๐ซ ๐ฏ๐จ๐ง ๐’๐ฐ๐š๐ญ๐œ๐ก ๐ค๐จ๐ฆ๐ฆ๐ญ:


๐Ÿ. ๐’๐ฐ๐š๐ญ๐œ๐ก ๐๐š๐ฆ๐ž๐ง๐š๐ค๐ญ๐ข๐ž๐ง ๐ค๐š๐ฎ๐Ÿ๐ž๐ง: Swatch Group shares are traded on the Swiss Stock Exchange. ATTENTION - there are registered shares (UHRN) and bearer shares (UHR). You can find the registered shares under ISIN: CH0012255144 - currently one registered share costs around 42 Swiss Francs.


๐Ÿ. ๐ˆ๐ง๐ฌ ๐๐š๐ฆ๐ž๐ง๐ซ๐ž๐ ๐ข๐ฌ๐ญ๐ž๐ซ ๐ž๐ข๐ง๐ญ๐ซ๐š๐ ๐ž๐ง ๐ฅ๐š๐ฌ๐ฌ๐ž๐ง: In order for Swatch to know that you are the owner of the shares, have yourself entered in the name register - this way you will automatically receive the documents for written or electronic representation. How this is done varies from bank to bank: there is often a function that allows you to register directly in e-banking. It is best to ask your bank or broker directly.


๐Ÿ‘. ๐•๐ž๐ซ๐ญ๐ซ๐ž๐ญ๐ฎ๐ง๐ ๐ฌ๐ฏ๐จ๐ฅ๐ฅ๐ฆ๐š๐œ๐ก๐ญ ๐ฎ๐ง๐ ๐–๐ž๐ข๐ฌ๐ฎ๐ง๐ ๐ฌ๐ž๐ซ๐ญ๐ž๐ข๐ฅ๐ฎ๐ง๐ : Usually in May you will receive a letter from the Swatch Group. There you can give your proxy and instructions to the independent proxy. If you have done this and sent it back to the Swatch Group, you will receive the shareholder gift after the General Meeting.



๐€๐ฎ๐ฌ๐ ๐ž๐ฐรค๐ก๐ฅ๐ญ๐ž ๐Š๐ž๐ง๐ง๐ณ๐š๐ก๐ฅ๐ž๐ง - ๐“๐ก๐ž ๐’๐ฐ๐š๐ญ๐œ๐ก ๐†๐ซ๐จ๐ฎ๐ฉ


As an asset manager, I always look at a company's ๐…๐ข๐ง๐š๐ง๐ณ๐ค๐ž๐ง๐ง๐ณ๐š๐ก๐ฅ๐ž๐ง. It is best to analyze a company from different angles. First, there is the ๐ช๐ฎ๐š๐ฅ๐ข๐ญ๐š๐ญ๐ข๐ฏ๐ž and second, there is also the ๐ช๐ฎ๐š๐ง๐ญ๐ข๐ญ๐š๐ญ๐ข๐ฏ๐ž ๐€๐ง๐š๐ฅ๐ฒ๐ฌ๐ž. In the next part, I will mainly go into the quantitative side and have some key figures of Swatch Group for you ๐š๐ฎ๐Ÿ๐›๐ž๐ซ๐ž๐ข๐ญ๐ž๐ญ. In my daily work as an asset manager, I work with exactly these metrics for my ๐•๐š๐ฅ๐ฎ๐ž- ๐ฎ๐ง๐ ๐Œ๐จ๐ฆ๐ž๐ง๐ญ๐ฎ๐ฆ ๐’๐ญ๐ซ๐š๐ญ๐ž๐ ๐ข๐ž. They are a good starting point - even though there are many other factors that go into the analyses:


The ๐’๐ฐ๐š๐ญ๐œ๐ก ๐†๐ซ๐จ๐ฎ๐ฉ ๐€๐† is ๐Ÿ๐š๐ข๐ซ ๐›๐ž๐ฐ๐ž๐ซ๐ญ๐ž๐ญ or even slightly undervalued at the moment. In terms of ๐๐ซ๐จ๐Ÿ๐ข๐ญ๐š๐›๐ข๐ฅ๐ข๐ญรค๐ญ and ๐„๐Ÿ๐Ÿ๐ข๐ณ๐ข๐ž๐ง๐ณ performance, Swatch was able to improve compared to the previous year.


At first glance, it looks like Swatch has two ๐๐ซ๐จ๐›๐ฅ๐ž๐ฆ๐ž ๐›๐ž๐ข ๐ข๐ก๐ซ๐ž๐ซ ๐…๐ข๐ง๐š๐ง๐ณ๐ข๐ž๐ซ๐ฎ๐ง๐ :


The ๐€๐ง๐ณ๐š๐ก๐ฅ ๐€๐ค๐ญ๐ข๐ž๐ง has ๐ž๐ซ๐กรถ๐ก๐ญ - reducing the share of profits for existing shareholders.

The ๐‹๐ข๐ช๐ฎ๐ข๐๐ข๐ญรค๐ญ๐ฌ๐ ๐ซ๐š๐ ๐Ÿ‘ got worse - which worsens the ability to pay.


๐€๐๐„๐‘:


Both fall here ๐ค๐š๐ฎ๐ฆ ๐ข๐ง๐ฌ ๐†๐ž๐ฐ๐ข๐œ๐ก๐ญ. Whether the number of shares is 257.58 (2020) or 258.97 (2021) makes little difference to individual investors.


When it comes to the liquidity ratio, the ๐Š๐ซ๐ข๐ญ๐ข๐ค ๐ง๐จ๐œ๐ก ๐ฏ๐ข๐ž๐ฅ ๐ฐ๐ž๐ง๐ข๐ ๐ž๐ซ ๐š๐ง๐ ๐ž๐›๐ซ๐š๐œ๐ก๐ญ: A liquidity ratio 3 of ๐Ÿ•.๐Ÿ‘๐Ÿ’ ๐ข๐ฌ๐ญ ๐ฆ๐ž๐ก๐ซ ๐š๐ฅ๐ฌ ๐ ๐ž๐ง๐ฎ๐ ! Because that means nothing other than Swatch is in the fortunate position of having 7.34 times more current assets than current liabilities. This is so good that it is almost inefficient in the other direction, because cash alone does not bring a return - ๐’๐ฐ๐š๐ญ๐œ๐ก ๐ฌ๐œ๐ก๐ฐ๐ข๐ฆ๐ฆ๐ญ ๐ฌ๐จ๐ณ๐ฎ๐ฌ๐š๐ ๐ž๐ง ๐ข๐ง ๐‹๐ข๐ช๐ฎ๐ข๐๐ข๐ญรค๐ญ. This is certainly due to the ๐–๐ž๐ซ๐ญ๐ž๐ง ๐๐ž๐ซ ๐‡๐š๐ฒ๐ž๐ค-๐…๐š๐ฆ๐ข๐ฅ๐ข๐ž: Even father Nicolas Hayek liked ๐ง๐ข๐œ๐ก๐ญ to be ๐ฏ๐จ๐ง ๐๐ž๐ซ ๐†๐ง๐š๐๐ž ๐๐ž๐ซ ๐๐š๐ง๐ค๐ž๐ง ๐š๐›๐กรค๐ง๐ ๐ข๐ . His son Nick Hayek and CEO of Swatch is in no way inferior.


So ๐ค๐š๐ง๐ง ๐“๐ก๐ž ๐’๐ฐ๐š๐ญ๐œ๐ก ๐†๐ซ๐จ๐ฎ๐ฉ ๐€๐† with their numbers quite รผ๐›๐ž๐ซ๐ณ๐ž๐ฎ๐ ๐ž๐ง.



๐•๐š๐ฅ๐ฎ๐ž ๐‚๐จ๐ฆ๐ฉ๐จ๐ฌ๐ข๐ญ๐ž


Swatch Group AG has a Value Composite of 20, which means that the company is ๐ญ๐ข๐ž๐Ÿ ๐›๐ž๐ฐ๐ž๐ซ๐ญ๐ž๐ญ from this perspective. A ๐ง๐ž๐ ๐š๐ญ๐ข๐ฏ๐ž๐ซ ๐๐ฎ๐ง๐ค๐ญ is that the ๐…๐ซ๐ž๐ข๐ž ๐‚๐š๐ฌ๐ก๐Ÿ๐ฅ๐จ๐ฐ decreased by 8.94% last year. Revenue before interest and taxes (๐„๐๐ˆ๐“) ๐ฌ๐š๐ง๐ค๐ž๐ง has also ๐ฎ๐ฆ ๐Ÿ๐Ÿ๐Ÿ’.๐Ÿ๐Ÿ % over the last five years, but recovered by ๐Ÿ’๐Ÿ‘.๐Ÿ—๐Ÿ % ๐ ๐ž๐ฌ๐ญ๐ž๐ข๐ ๐ž๐ซ๐ญ last year.


๐๐ข๐จ๐ญ๐ซ๐จ๐ฌ๐ค๐ข ๐…-๐’๐œ๐จ๐ซ๐ž


The Swatch Group AG has a ๐…-๐’๐œ๐จ๐ซ๐ž ๐ฏ๐จ๐ง ๐Ÿ•. The two point deductions are very severe and almost absurd especially at the liquidity ratio 3 of 7.34. Thus, ๐š๐ฎ๐ฌ ๐ฆ๐ž๐ข๐ง๐ž๐ซ ๐’๐ข๐œ๐ก๐ญ is the ๐…-๐’๐œ๐จ๐ซ๐ž ๐ž๐ก๐ž๐ซ ๐›๐ž๐ข ๐Ÿ– ๐จ๐๐ž๐ซ ๐ฌ๐จ๐ ๐š๐ซ ๐Ÿ— - which is the maximum score. This is a ๐ฌ๐ž๐ก๐ซ ๐ ๐ฎ๐ญ๐ž๐ซ ๐–๐ž๐ซ๐ญ that indicates a solid ๐๐ซ๐จ๐Ÿ๐ข๐ญ๐š๐›๐ข๐ฅ๐ข๐ญรค๐ญ, ๐„๐Ÿ๐Ÿ๐ข๐ณ๐ข๐ž๐ง๐ณ and ๐…๐ข๐ง๐ง๐š๐ณ๐ข๐ž๐ซ๐ฎ๐ง๐ . Especially when considering the research of Professor Joseph D. Piotroski: After all, companies that scored the highest 8 or 9 were able to achieve an average รœ๐›๐ž๐ซ๐ซ๐ž๐ง๐๐ข๐ญ๐ž ๐ฏ๐จ๐ง ๐Ÿ๐Ÿ‘.๐Ÿ’ % over the market during the 20-year period from 1976 to 1996. However, here I would like to put my word of warning again: NOT every company with an F-Score of 8 or 9 achieves such a return! Some are well above it, some may be close to it, and still others well below it. Such studies usually take into account a diversified portfolio of securities. So simply buying one such stock doesn't work. In my own investments and especially as an asset manager, I make sure to keep a close eye on so-called single stock risks.



๐–๐š๐ซ๐ฎ๐ฆ ๐š๐ฎ๐ฌ๐ ๐ž๐ซ๐ž๐œ๐ก๐ง๐ž๐ญ ๐๐ข๐ž๐ฌ๐ž ๐•๐š๐ฅ๐ฎ๐ž-๐Š๐ž๐ง๐ง๐ณ๐š๐ก๐ฅ๐ž๐ง?


The basic tenets of value investing are somewhat clear: value investors seek out undervalued companies to invest in. This often involves quantitative and qualitative analysis. However, when it comes to actual implementation, there are a variety of approaches. I find it ๐ ๐ž๐Ÿรค๐ก๐ซ๐ฅ๐ข๐œ๐ก to focus on one ratio, such as price-to-earnings or price-to-book, and make the investment decision dependent only on these quantitative factors of company valuation. Here, it seems to me that the ๐Š๐จ๐ฆ๐›๐ข๐ง๐š๐ญ๐ข๐จ๐ง ๐ฏ๐จ๐ง ๐๐ž๐ฐ๐ž๐ซ๐ญ๐ฎ๐ง๐ ๐ฌ๐ค๐ž๐ง๐ง๐ณ๐š๐ก๐ฅ๐ž๐ง ๐ฌ๐ข๐ง๐ง๐ฏ๐จ๐ฅ๐ฅ - such as O'Shaugnessy's Value Composite. Such long-term studies are worth their weight in gold, in my opinion, and are also meaningful. He analyzed a wide variety of value metrics over 45 years, from January 1, 1964 to December 31, 2009, to figure out which value metrics to use to select companies for the best returns. This resulted in the so-called Value Composite, which is a combination of these value metrics. He tested this combined valuation ranking for all rolling 10-year periods over the 45-year period between 1964 and 2009. He found that it performed ๐ข๐ง ๐Ÿ–๐Ÿ % ๐๐ž๐ซ ๐…รค๐ฅ๐ฅ๐ž ๐›๐ž๐ฌ๐ฌ๐ž๐ซ than companies that were undervalued based on a single valuation metric - but just not when the other valuation metrics were also looked at.



๐–๐ž๐ฌ๐ก๐š๐ฅ๐› ๐๐ž๐ซ ๐๐ข๐จ๐ญ๐ซ๐จ๐ฌ๐ค๐ข ๐…-๐’๐œ๐จ๐ซ๐ž?


The Piotroski F-Score provides an initial assessment of the ๐๐ซ๐จ๐Ÿ๐ข๐ญ๐š๐›๐ข๐ฅ๐ข๐ญรค๐ญ, ๐…๐ข๐ง๐š๐ง๐ณ๐ข๐ž๐ซ๐ฎ๐ง๐ , and ๐„๐Ÿ๐Ÿ๐ข๐ณ๐ข๐ž๐ง๐ณ of a company. It can be traced back to Joseph D. Piotroski, a professor of accounting. In 2000, he wrote a research paper titled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers." His findings รผ๐›๐ž๐ซ๐ญ๐ซ๐š๐Ÿ๐ž๐ง his ๐จ๐ฉ๐ญ๐ข๐ฆ๐ข๐ฌ๐ญ๐ข๐ฌ๐œ๐ก๐ฌ๐ญ๐ž๐ง ๐„๐ซ๐ฐ๐š๐ซ๐ญ๐ฎ๐ง๐ ๐ž๐ง:


Buying companies that scored the highest 8 or 9 on his nine-point scale, or F-score, as he called it, resulted in an average รœ๐›๐ž๐ซ๐ซ๐ž๐ง๐๐ข๐ญ๐ž ๐ฏ๐จ๐ง ๐Ÿ๐Ÿ‘.๐Ÿ’ % over the market during the 20-year period from 1976 to 1996.



๐–รผ๐ซ๐๐ž ๐ข๐œ๐ก ๐๐ข๐ž ๐€๐ค๐ญ๐ข๐ž ๐ฏ๐จ๐ง ๐“๐ก๐ž ๐’๐ฐ๐š๐ญ๐œ๐ก ๐†๐ซ๐จ๐ฎ๐ฉ ๐ก๐ž๐ฎ๐ญ๐ž ๐ค๐š๐ฎ๐Ÿ๐ž๐ง?


Swatch is a very ๐ณ๐ฒ๐ค๐ฅ๐ข๐ฌ๐œ๐ก๐ž๐ซ ๐“๐ข๐ญ๐ž๐ฅ, which ๐ฏ๐ข๐ž๐ฅ ๐๐ž๐ซ๐ฏ๐ž๐ง ๐ฏ๐ž๐ซ๐ฅ๐š๐ง๐ ๐ญ. From today's perspective, the stock is certainly not too expensive. However, since a large part of the sales is made in ๐‹๐ฎ๐ฑ๐ฎ๐ฌ๐ฌ๐ž๐ ๐ฆ๐ž๐ง๐ญ, the business performance is strongly ๐š๐›๐กรค๐ง๐ ๐ข๐  from China and also in Russia the business was quite good until February 24, 2022. These are ๐‘๐ข๐ฌ๐ข๐ค๐จ๐Ÿ๐š๐ค๐ญ๐จ๐ซ๐ž๐ง which should be kept in mind. There are companies that offer at least as good, if not ๐›๐ž๐ฌ๐ฌ๐ž๐ซ๐ž ๐‚๐ก๐š๐ง๐œ๐žn with less thrills. Even though Swatch currently seems cheap to fairly valued, the ๐๐ซ๐ž๐ข๐ฌ๐ฆ๐จ๐ฆ๐ž๐ง๐ญ๐ฎ๐ฆ is once again ๐ข๐ฆ ๐Š๐ž๐ฅ๐ฅ๐ž๐ซ.


In the current environment with ๐ ๐ž๐จ๐ฉ๐จ๐ฅ๐ข๐ญ๐ข๐ฌ๐œ๐ก๐ž๐ง ๐‘๐ข๐ฌ๐ข๐ค๐ž๐ง such as the conflict over Taiwan and the war in Ukraine, I am more ๐ฏ๐จ๐ซ๐ฌ๐ข๐œ๐ก๐ญ๐ข๐  with ๐ˆ๐ง๐ฏ๐ž๐ฌ๐ญ๐ข๐ญ๐ข๐จ๐ง๐ž๐ง ๐ข๐ง ๐๐ข๐ž ๐‹๐ฎ๐ฑ๐ฎ๐ฌ๐ข๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ข๐ž. I'm repeating myself here, but right now I see mostly ๐‚๐ก๐š๐ง๐œ๐ž๐ง ๐ข๐ฆ ๐‘๐จ๐ก๐ฌ๐ญ๐จ๐Ÿ๐Ÿ๐ฌ๐ž๐ค๐ญ๐จ๐ซ, as you can read in the post on ๐‘๐ž๐›๐š๐ฅ๐š๐ง๐œ๐ข๐ง๐  ๐ข๐ฆ ๐€๐ฎ๐ ๐ฎ๐ฌ๐ญ:


https://www.valueinvestments.ch/vermoegensverwaltung-estoppey-value-investments-value-und-momentum-rebalancing-august-2022


There are ๐ฉ๐ซ๐จ๐Ÿ๐ข๐ญ๐š๐›๐ฅ๐ž ๐”๐ง๐ญ๐ž๐ซ๐ง๐ž๐ก๐ฆ๐ž๐ง to buy ๐ รผ๐ง๐ฌ๐ญ๐ข๐ ๐ž๐ซ that have a ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐ฏ๐ž๐ฌ ๐Œ๐จ๐ฆ๐ž๐ง๐ญ๐ฎ๐ฆ to boot.


My one ๐’๐ฐ๐š๐ญ๐œ๐ก ๐€๐ค๐ญ๐ข๐ž, however, I will definitely ๐›๐ž๐ก๐š๐ฅ๐ญ๐ž๐ง - in the portfolio it has no weight and the next ๐€๐ค๐ญ๐ข๐จ๐งรค๐ซ๐ฌ๐ฎ๐ก๐ซ is coming for sure.


In the ๐•๐ž๐ซ๐ฆรถ๐ ๐ž๐ง๐ฌ๐ฏ๐ž๐ซ๐ฐ๐š๐ฅ๐ญ๐ฎ๐ง๐  for my clients, I look for a ๐Š๐จ๐ฆ๐›๐ข๐ง๐š๐ญ๐ข๐จ๐ง between ๐ญ๐ข๐ž๐Ÿ๐ž๐ซ ๐๐ž๐ฐ๐ž๐ซ๐ญ๐ฎ๐ง๐  and ๐ก๐จ๐ก๐ž๐ฆ ๐Œ๐จ๐ฆ๐ž๐ง๐ญ๐ฎ๐ฆ. In addition, I review all companies with ๐ฌ๐ญ๐ซ๐ž๐ง๐ ๐ฌ๐ญ๐ž๐ง ๐๐ฎ๐š๐ฅ๐ข๐ญรค๐ญ๐ฌ๐ค๐ซ๐ข๐ญ๐ž๐ซ๐ข๐ž๐ง in order to be more aware of the ๐•๐š๐ฅ๐ฎ๐ž ๐“๐ซ๐š๐ฉ ๐ฏ๐จ๐ซ๐ณ๐ฎ๐›๐ž๐ฎ๐ ๐ž๐ง. You can also find my current portfolio in Estoppey Value Investments asset management on the blog:


https://www.valueinvestments.ch/blog



$UHRN (-0.15%)

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Instructions too imprecise. I have now received three Moonwatches and 2 Planet Oceans as a gift. ๐Ÿซฃ
Joking aside. Interesting company (I have 3 Swatch watches myself (MIDO and Omega). Also interesting to describe the path to the dividend in kind.
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Great post ๐Ÿ™Œ but just 4 months old already, how time flies ๐Ÿ˜… Would you like to do an update post on $UHRN? :)
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Great post ๐Ÿ™Œ but just 4 months old already, how time flies ๐Ÿ˜… Would you like to do an update post on $UHRN? :)
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hey, now I have to ask here: I got the share through consors... now I'm looking a few days, what you have to do for the registration and there are contradictory answers:( support did not answer yet ... someone here who also made it through sponsors ?
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