Thoughts on $HEN (+1,14 %)

Well Henkel is a stock I have a personal connection to, but maybe that's why I'm so critical...but I'll take you into my thoughts for now.

First, something positive: no one will take away their world market leader position in the industrial adhesives sector anytime soon. Long-term partnerships with globally important companies are positive. But what about the actual signature product?

Connoisseurs know that I mean Persil. But what about it? Henkel is growing (admittedly through price increases) but Henkel is growing and even more strongly than previously assumed.

But what is to come, maybe I am naive but where is the room for further innovations in detergents but also in Schwarzkopf, Fa etc.? What is to come there?

Well, you don't always need an innovation to earn money in the long term, because Persil has been around for ages, but the figures for this business sector already look significantly worse than those for the adhesives sector. The profitability of the company is (significantly) below inflation.

Maybe you don't expect it, but I still have some Henkel shares: funny with my pessimistic view on everything except adhesives. But Henkel will survive the next decades the basic business with adhesives is safe, and the dividend is safe too (-> consolidated financial statements). Therefore, an investment has long-term potential, because the company will live, the adhesive is needed and maybe my assessment of everything else is a bit too critical ;)

PS: I like to buy shares of German companies (you can tell, right?)