1Yr·

"When we talk to China, we get an airport; when we talk to Germany, we get a lecture." - Another round of Germany bashing

A few days ago, I read a very interesting article about Germany and many of our problems in Manager Magazin:

It mentions 3 keywords in detail: Morality, Prices & Technology

Morality:

The quote in the headline comes from the (Nigerian) Director-General of the WTO after she was invited by our Foreign Minister.

Many countries and regions of the world do not want to receive a moral lecture every time they place an order or invest in or with Germany. So they prefer to buy from other countries that simply want to do business

Prices:

The article mentions that BASF $BAS (-0.61%) and Lanxess $LXS (-2.92%) will give up their ammonia production in Germany because it is simply no longer economically viable given the energy prices here. Both companies will now operate most of their production in China.

Not only are we creating a further dependency on China, we are also doing massive damage to the environment. Ammonia is produced in China in a much less environmentally friendly way, which will increase CO2 emissions by a factor of 10.

Winner: China

Loser: Germany and the environment

Technology and "digital sovereignty":

While we don't seem to care about sovereignty in many cases (see the example of ammonia from above), we absolutely want to achieve it in the digital realm and are daring to go it alone here without the Americans (who are miles ahead).

Among others, our misappointed minister of the interior Nancy Faeser only wants to use home-grown software for the police - so they are tinkering with something themselves instead of relying on good, functioning software.

According to the article, the Bundeswehr also does not want to use software from abroad, unlike most other partners.

-> In the end, we will probably burn a lot of money again and have to continue to rely on fax and the like

As we are on a stock market platform here and not a political platform, I don't want to go into detail about the political view (don't vote for the Greens 😉), but how we as investors can deal with this.

And there is one way in particular: invest as little as possible in Germany and, if you do, only very selectively. My portfolio therefore only contains the following German stocks:

Allianz
$ALV (+0.7%) As we Germans are known to be very security-conscious people, it is clear that we are particularly good at one thing: Insurance. As the largest or one of the largest insurers in the world, Allianz is therefore a good German share for me. In addition, my purchase in the corona low at €120 has given me a personal dividend yield of almost 10%
Bechtle
$BC8 (-1.67%) If we want to make progress with digitalization, we need system houses like Bechtle. They digitize companies or even government agencies on both the software and hardware side - in addition, the company regularly increases its sales and dividends
Encavis
$ECV (+0.06%) The topic of energy will be with us for a long time to come, and I believe that companies with a strong or pure focus on renewable energies can benefit from this. I think Encavis is well positioned here
Sartorius
$SRT3 (+2.84%) In my view, pharmaceuticals will be one of the major growth areas alongside tech due to demographic developments, and we need laboratories for pharmaceutical research. As a laboratory supplier, Sartorius is therefore also operating in an exciting environment, which is currently affected by the end of the pandemic - during Corona there was a lot of purchasing, these stocks are now being reduced first. With Thermo Fisher $TMO (+0.96%) is another company from this sector in my portfolio, also with similar problems

Regardless of these companies, I don't think there are too many exciting German stocks left. Munich Re $MUV2 (+4.37%) could still be mentioned, and Porsche $P911 (-2.48%) could also be an exciting brand and therefore share. Deutsche Börse might also be exciting $DB1 (+0.69%) and, as very conservative stocks, possibly Telekom $DTE (-1.51%) or Deutsche Post / DHL $DHL (-1.02%)

What do you think of the points mentioned in the article?

And what are still "must have" stocks from Germany for you?

https://www.manager-magazin.de/politik/deutschland/mittelstand-warum-german-free-international-zum-werbeslogan-wird-a-2f28a720-c2ce-46a9-bdd6-dc9d8bcacd05

#aktie
#stocks
#deutschland
#personalstrategy

www.manager-magazin.deMeinung: Mittelstand: Warum "German free" international zum Werbeslogan wird

30 Comments

Enrique@Dividenden_Monteur

1Yr

The article in the magazine is unfortunately poorly researched. Especially when it comes to defence technology, 99% of most sectors involve a German company. For example, you could mention Zeiss as a manufacturer of lenses, without which a Lockheed missile would not hit a target, or Bosch and Siemens for the electronics. Then there's the optics sector, where there are just 3 German companies on the global market that cover everything. And I don't even want to go into the comment by the lady from Nigeria. They have already sold out to China like several African countries, so I expect a statement like that so as not to upset the Communist Party in Beijing.

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NEWT@SteelAnacott

1Yr

@Der_Dividenden_Monteur I agree, some African countries have unfortunately sold out to China for a quick buck. China is thus securing the raw material deposits there and solving part of its population problem by letting poor farmers from the western provinces work in Africa. In the long term, the countries will become more and more politically and economically dependent on China. This is colonialism 2.0, nothing else.

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Mister_ultra@Mister_ultra

1Yr

@Der_Dividenden_Monteur I see two main arguments in your contribution. The first argument is in our favor, but we should do our utmost to prevent other countries from relying on us and instead say that we will support such companies in our country and no longer have to put up with the moral finger pointing from Germany. The strength of the German hidden champions must be preserved and promoted at all costs. On the second point: Absolutely, the lady is of course not without self-interest. But in my opinion, the statement does hit the nail on the head. Germany often comes across as know-it-all in the world. People didn't like classmates like that at school and I'm sure many countries feel the same way. We have to be careful that not all countries are just annoyed by us or don't want to talk to us at all.

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Enrique@Dividenden_Monteur

1Yr

@Mister_ultra On point 1: most hidden champions are so hidden that they are usually under the radar of political influence. Which I see as a big advantage here. A good example of this is the current Formnext trade fair in Frankfurt. There are some booths with 10 employees that you've never heard of, but which are as far along in 3D printing as the big ones will only be in 5 years. On point 2: it's a bit like the Americans, derisively decried as the world police, but nevertheless every country is happy to have an American base and can therefore feel safe.

And something else about the German Free nonsense from the magazine: The largest water bottler in the USA, Niagara Bottling, had it written into the contracts with my former employer that 90% of the fitters have to be German, because they don't want to work with Americans

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Luffy@Luffy3D2Y

1Yr

I always find it interesting to see that developing countries want to receive aid from Germany, but don't want to talk about morality. They trade freely without morals with dictators who pump in money without talking. Out of charity, of course, and purely as humanitarian aid ;D. I would like to look on the bright side. Sometimes Germany is too good. Then let China, Russia and the like handle the humanitarian aid on their own.

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Mister_ultra@Mister_ultra

1Yr

@Luffy3D2Y absolutely! But of course you also have to differentiate between economic transactions and development aid. In my opinion, development aid should also pay much more attention to morals, the environment, etc. If I pay development aid to a country, I want to be able to demand that it is used for renewable energies, for example. If I pay development aid to a country, I want to be able to demand that it is used for renewable energies, for example. But if I sell an economic good to a country and at the same time receive payment for it, I can't make the same demands as with money given as a gift.

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Luffy@Luffy3D2Y

1Yr

@Mister_ultra Not wrong, but it is often the case in countries that they need help, but when it comes to the economy, they want to see it separately. Then they should first help their country themselves and get it on its feet and then I agree with you. Trade is trade, but don't beg and whine about it on the one hand, but on the other hand you can't take any criticism.

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Epi@Epi

1Yr

You can complain about a lot of things in our government, but it is still democratically elected. Those up there - that's us! If you don't want that, you can convince others, put yourself forward and get elected. Have fun with that! As for the moral finger: what does "morality" consist of? In most cases, it is little more than the demand that German money is actually spent where it was promised to be spent. Of course, many governments have no interest in such proof. The rich dictatorships don't look too closely, but when it's payday, there is the threat of lifelong servitude (e.g. Sri Lanka - China).

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Mister_ultra@Mister_ultra

1Yr

@Epi On the first point: yes and no from my point of view. We are a democracy and I am extremely happy about that. Nevertheless, the government is acting so against my convictions (not just economically) that I can't say I'm part of it. Yes, I have to live with it in a democracy, but I can clearly say that I don't want to live in a traffic light Germany. Furthermore, you are of course right that everyone can do something about it and stand up for themselves. But I'll be honest: it doesn't suit my goals and career aspirations, nor do I ever want to have to live in Berlin. I know you can't grumble on the one hand and then do nothing about it on the other. But if everyone who isn't happy with the government (I mean 70-80% in Germany at the moment) were to line up, we would no longer have an economy because no one would be working productively. I agree with you there too, but for me there is always a difference between talking about development aid and economic transactions. In the case of development aid, the moral finger is absolutely appropriate. Money is only given as a gift if it is in line with our morals, but economic transactions should not fall under this standard, as we receive something in return (goods in exchange for money)

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Nico@itZNico

1Yr

@Epi "Those up there - that's us!" - Well, you can tell by the language. In Switzerland, people talk about "we" when it comes to politics. We say "the politicians". In a representative democracy, ivory towers and an elitist political caste quickly emerge from which ordinary citizens no longer feel represented. Going into politics or forming a party for every issue? No, why not hold referendums? Direct democracy is the best democracy!

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Staatsmann@Staatsmann

1Yr

On the subject of morality: I agree, and I would extend it to the western EU states. You hear similar things from France, Austria and the like. Unfortunately, these states are generally very happy to take money, but then want to keep the subject of human rights quiet. Prices: China is currently expanding (cheap) renewable energies at a pace that Germany can only dream of. In both absolute and percentage terms, China has caught up at such a pace that people in the EU would howl if it were made public. Renewable energies are the cheapest energy sources in the world. Of course, this also keeps electricity prices low. In the last 15 years, China has expanded so massively that the price of electricity is currently very low. (In Germany, large companies sometimes receive flat-rate purchase agreements. In other words, if at least X MWh are consumed, you pay like a flat rate. There is no such thing in China. In addition, electricity prices for companies such as BASF are free of levies and the like). The argument that people are now going to China because of the electricity prices is a bogus argument for me in order to escape the European tax burden, German workers' rights and European market control. After all, it's easier to trade with sanctioned countries via China. 😉 Unfortunately, I'm not familiar enough with the software issue.
I've only heard in passing that German or European software is probably the main focus, as many US software companies have problems with the strict data protection regulations and some also want to keep backdoors in the EU based on the Patriot Act. But that's more of a rumour mill. I almost only bet on Germany through the ETFs and then just $XTP as a small bet on their start-up investments.

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Mister_ultra@Mister_ultra

1Yr

@Staatsmann

Morality: True, but it should also be noted here that a distinction should be made between development aid (morality is absolutely appropriate) and economic business prices: All fair points and of course many companies also like to use excuses that are currently politically available. On the points of tax burden, market controls, etc. exciting points. I think we have to assert ourselves against the USA in particular, which currently offers much more attractive framework conditions than Germany and the EU. Software: Unfortunately, I don't really know any more about this than the article says, but the point you made about data protection and whether the data remains in the EU or flows via US servers are of course interesting questions. Nevertheless, I don't think we can achieve digital sovereignty without the Microsofts, Amazons and Alphabets of the world.

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Staatsmann@Staatsmann

1Yr

@Mister_ultra I also think it's right to question the morality of economic transactions. Were the raw materials you want to buy mined using child labor or slave-like employment conditions? What impact did the production have on the local economy and the environment? For example, it also sounds great that you can donate old clothes. The fact that this has developed into a real mafia that has completely taken over the local clothing markets is often ignored. It is similar with our "food leftovers". In Germany, the breast and wings are preferred for the production of chicken meat. The legs go to African countries and, with the dumping prices, ensure that local livestock farmers can no longer offer chicken meat economically, because our "waste" is squandered there. With software, it is the case that you buy software according to your own standards. If appropriate standards are not offered, then you have to develop something yourself. Especially with regard to data protection etc. I have nothing to hide, but I wouldn't think it's great if the software for bodycams then analyzed the deployments and people in Germany in the USA... It's similar with software for managing prisons, law enforcement etc.

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Ella Marie Waschbär@DividendenWaschbaer

1Yr

I also read the article and found it very interesting. However, in principle, this has been known for a long time and is just becoming more and more public. We are losing orders to foreign countries, we are losing our reputation abroad and we are ruining ourselves more and more. It is these moralistic, supposedly know-it-all statements in particular that are getting us into trouble. Other countries, other customs. No halfway sovereign country likes to be talked into its domestic policy or be lectured on why it is doing something wrong. This is also slowly becoming apparent in politics. But by the time something happens, many companies will have already moved away. We have many great companies in Germany that have a lot of potential. But this also requires the right political/economic conditions. In addition to $DTE and $DHL, I have $ALV in my portfolio. These three will definitely stay.$EOAN delivers great dividends but is also performing rather sideways. I'm thinking about getting rid of it because the energy market is also too uncertain for me. The same applies to $MBG. In my opinion, the automotive sector is too dangerous as an investment in Germany at the moment (who would have thought that?). However, I am still keeping an eye on how the luxury segment is developing, which will be the main focus in the future.

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Mister_ultra@Mister_ultra

1Yr

@DividendenWaschbaer Absolutely, that's how I see it too. Even if it is certainly a little exaggerated in the article, a general feeling that it is better to switch to other countries when doing business is enough. I also have no desire to work with a colleague who is constantly unproductively complaining instead of simply doing his job. Interesting stock selection in any case, we have a similar view of ourselves. I also had Mercedes in my portfolio for a while, but apart from dividends, there really isn't much going on there (unless you buy at the corona low of €20)

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Sparfuchs@Reinecke

1Yr

Of course, always use the software from the USA, as the backdoor for reconnaissance is included.

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Capt‘n@Wuestenschiff

1Yr

I am currently traveling a lot in the Arab world and can only confirm your points. There would be a lot of money to be made for German companies, but "thanks" to German politics, French, British and Spanish companies are snapping up orders and laughing their heads off...

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Thomas@DonkeyKongx

1Yr

I don't understand how people can always talk themselves up here. I would like to see a direct democracy like in Switzerland. All these clown noses can only point the finger at you and what exactly does that achieve? It cuts us off from the world and with your "ethics" & "morals" people can't eat or drink anything either. Just the level of unqualified people sitting in politics and indulging in tiktok and writing social media posts and pulling in more non-thinking people. It's a completely deluded world and whoever comes to me with the argument that if nobody starts nothing will happen! Take off your clown nose yourself, people will always find ways because they are controlled by their minds and you can imagine anything you want. The biggest beast is and remains man. 👀☝️ We have developed speed But inwardly we have stood still We let machines work for us And they also think for us Wisdom has made us arrogant And our knowledge cold and hard We speak too much and feel too little But first comes humanity And only then the machines Before wisdom and knowledge comes tolerance and kindness Without humanity and charity, our existence is not worth living .

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Staatsmann@Staatsmann

1Yr

@fLyZeee But it is also a fact that direct democracy has extreme weaknesses. For example, populism will gain a lot of influence, because most citizens have far too little expertise to understand the consequences and vote emotionally (e.g. death penalty etc.). I am generally in favor of a technocracy, provided that decisions are really made based on science and not lobbying.

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Thomas@DonkeyKongx

1Yr

@Staatsmann and you're telling me that this whole lot isn't based on "populism"? Most citizens have no idea because they don't take the time to listen to what is ringing in their ears. Plus all kinds of manipulation from various media. I would even prefer harsher penalties, everyone just laughs about it. Technocracy sounds exciting, but it won't catch on because common sense has never caught on.

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Staatsmann@Staatsmann

1Yr

@fLyZeee Did I claim that things are different now? But direct democracy offers many more opportunities for populism to prevail.

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Thomas@DonkeyKongx

1Yr

@Staatsmann When I read through the first few sentences, it sounds like that. Sorry if that wasn't your intention. Yes well, I'm always the practitioner before always thinking through these eternally long theories that are useless in reality.

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Scharre@Scharre

1Yr

In short: this government is only going downhill!

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NEWT@SteelAnacott

1Yr

I maintain that I put a lot of thought into the composition of my portfolio (buy and hold, focus on companies with earnings and dividend growth). I currently have exactly one German company in my portfolio, $DHL, and it is not part of the hard core of my portfolio. At one point I was invested in $SRT, but I got out because I didn't want to be invested in too many stocks in the medical sector and I thought there were better options. Unfortunately, I don't see very many German stocks that make it into a globally diversified portfolio of 25 shares based on the selection criteria of market position and future prospects.

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Mister_ultra@Mister_ultra

1Yr

@NEWT1 Good point about the 25 shares, with 25 shares there really are much better companies globally. There are about 50 stocks in my portfolio, so there is a little room for Germany, but in total less than 5%

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Lukas1000@Lukas1000

1Yr

Here is one 👋 a green one

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Mister_ultra@Mister_ultra

1Yr

@Lukas1000 My condolences, I hope this will pass :D

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Lukas1000@Lukas1000

1Yr

@Mister_ultra Don't worry. Faith in the future remains strong 😘

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DividendenRambo@DividendenRambo

1Yr

Well, so much international porcelain that Anna Lena has smashed just leaves its mark. I feel sorry for the next foreign minister. He'll have a lot of cleaning up to do.

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Christian@Investor-College

1Yr

Don't forget the $TLX. It went very well.

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