2Wk·

One of the best shares from 🇩🇪

All the money is going back into the savings plan this month 😊

19.05

Deutsche Boerse

Received x10 Dividends at €4.00

€40.00

9 Comments

ThemenmitKopf@topicswithhead

2Wk

I was actually bullish but I listened to a podcast and the share was just trashed. The problem is that I was able to understand all the points and now I'm thinking about selling. It did very well and is one of the best German shares but I don't know

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Nick@Nick-investing

2Wk

@topicswithhead What were the negative points or what is the name of the podcast episode?

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ThemenmitKopf@topicswithhead

2Wk

@Nick-investing was with the CEO of the Norwegian sovereign wealth fund. The criticism was that the business is now data and therefore no longer really a moat. There are heaps of providers who offer this and it is therefore easy to change. The exchanges themselves are also no longer important. A lot of competition and the American stock exchanges in particular attract all the iPOs. As a result, the basis of the European stock exchanges is falling apart. Almost 50% of turnover comes from recurring sales confirms the thesis quite well. The question is why should the German stock exchange be better in the long term than the MSCI, Black Rock Factset, NASDAQ and co.

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Nick@Nick-investing

2Wk

@topicswithhead You don't happen to have a link or the name of the episode? I would be really interested.

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ThemenmitKopf@topicswithhead

2Wk

@Nick-investing https://pca.st/episode/764a87c2-5549-4840-9dd0-98a9c2f10c85
Is about a European investor and not specifically about the German stock exchange but tells why he bought and sold it and much more

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Nick@Nick-investing

2Wk

@topicswithhead Thank you!

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ThemenmitKopf@topicswithhead

1Wk

@Nick-investing when you have listened to it, please tell us your opinion

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Nick@Nick-investing

1Wk

@topicswithhead @topicswithhead I listened to the episode and I don't quite agree with Chris Hohn. I see the difference between Deutsche Börse and e.g. MSCI, Blackrock and Co. in the fact that Deutsche Börse is not just a data provider. They cover the entire value chain from capital market infrastructure to analytics, software and, of course, data and indices. This means that there are many opportunities for cross-selling. And anyone who already uses the market infrastructure or fund administration of $DB1 will probably also use analytics software and may not switch so easily due to stickiness. Furthermore, not all data is the same: specific trading data (Eurex, electricity exchange, etc.) is only available from $DB1, just as the STOXX indices are only available from $DB1. But yes, the fact that more and more IPOs are migrating from Europe to America is a serious (but in my opinion not an existential) risk. I hope that Europe has finally heard the message when it comes to capital markets union and competitiveness. Hohn also talks in the podcast about his activism against the takeover of the London Stock Exchange by Deutsche Börse in 2007.

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ThemenmitKopf@topicswithhead

1Wk

@Nick-investing Well, basically I agree with him. The argument that "data is not the same as data" is pretty weak in my eyes, because most of the time it is. There is practically no difference between STOXX and MSCI in 90% of cases. Whether it is called DAX or MSCI Germany makes hardly any difference. And whether a key figure is 0.40 or 0.41 is also rather irrelevant. Both providers deliver ESG data and in this respect he is right with his thesis: the Deut. Börse hardly has a real moat these days. The explicit data that is still available only continues to come if you have the basis for it. With few IPOs and other things, this is becoming increasingly obsolete. Apart from that, these are only specific to Germany. Something like clearing is of course excluded from this, it will probably not simply disappear, although if you are aiming for a capital market union, there is no reason why Euronext should not also implement its clearing here. In short, the most valuable thing is simply the monopoly position, but that is getting smaller and smaller

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