9Lun·

How do you actually see L'Oreal $OR (-0,67 %)
at the moment?

I'm very undecided about the company. What I don't like about the share is the whole anti-investor tax issue in France. And the company (sector) doesn't really fit in well with my tech portfolio.

On the other hand, the valuation is currently very attractive in historical terms. It is also a very robust share - with comparatively little volatility and drawdowns and very good profitability. A really healthy, high-quality company with strong brands.

In recent years, profit margins have been rising again quite well, which is also very interesting. From 2010 to 2020, this rose quite leisurely from 11.5% to 12.7%. From 2020 to the end of FY 2023, however, it even rose to 15%. Overall, profits are therefore also growing faster than sales at around 10% per year.

L'Oreal has therefore been increasing its dividend again for 3 years and has not lowered it for 18 years. Despite this, the share has suffered unusually heavy losses in recent months.

What is your assessment of L'Oreal? Are you invested? Would you refrain from investing? Are you considering getting in?

26 Comentarios

CrashBurner@Psychedelic_Sunflower

9Lun

An absolutely great company with a great long-term performance. Yes, French withholding tax is not nice, but $OR is not bought because of the dividend, but despite the dividend. Despite the high withholding tax, the performance is still strong and that's what matters. So for me it's clearly an investment.

•

ThemenmitKopf@topicswithhead

9Lun

@Psychedelic_Sunflower you pay the withholding tax when buying and selling so it is not

••

Soprano@Soprano

9Lun

@topicswithhead Withholding tax but not financial transaction tax

••

CrashBurner@Psychedelic_Sunflower

9Lun

@topicswithhead No, the French financial transaction tax applies to buying and selling, which is 0.2% of the order volume. So it's not significant. If I want to hold the share, it really doesn't matter.

••

ThemenmitKopf@topicswithhead

9Lun

@Psychedelic_Sunflower Withholding tax or just home purchase financial transaction tax, no matter what it's called, is just annoying and a yield killer. Then there's the spread, which feels like a TER like an ETF😂

••

Kevin E.@KevinE

9Lun

They are out for me, precisely because of the tax issue. I think DKB is tax-simplifying in the direction of France, but I don't use a third broker for that.

I've also come across it more often recently when screening. Downside potential (fundamental) is still there, but not too much in my opinion.

I also believe that you won't get them too much cheaper unless profits suddenly collapse. And I think that is unlikely at the moment.

•

Ronald@AlterMann

9Lun

French equities are not a buy for me in principle due to the financial transaction tax.

•

Soprano@Soprano

9Lun

@AlterMann Absolutely understandable

••

Sansebastian@Sansebastian

9Lun

L'Oreal is a long-term runner and has clearly outperformed PG and PEP over the last 10 years, for example. The share is currently in a strong support zone - there should definitely be a reaction here, then this would be a good point to enter or add to the stock

•

Enrique@Dividenden_Monteur

9Lun

@Sansebastian aren't they already under the zone?

••

Sansebastian@Sansebastian

9Lun

@Der_Dividenden_Monteur the €364.20 must be maintained

••

Sansebastian@Sansebastian

9Lun

@Der_Dividenden_Monteur the reaction does not look bad today

••

Enrique@Dividenden_Monteur

9Lun

@Sansebastian right, but keep your feet still for now, I don't like the fact that the low of October 23 was undercut.

$BRK.B I find this more interesting than trading

••

Sansebastian@Sansebastian

9Lun

@Der_Dividenden_Monteur the more prominent low of February 23 has held so far 😉

••

Soprano@Soprano

9Lun

@Der_Dividenden_Monteur How did you come up with Berkshire? I don't feel it's a good time to buy at the moment, the share has recently performed well again, the undervaluation has been reduced and it's not benefiting from falling interest rates. At the moment, I don't have the perspective to buy more and Buffet isn't buying back the shares either.

••

Enrique@Dividenden_Monteur

9Lun

@Soprano https://www.tradingview.com/x/1cP1Uk69

I go by zones.
Currently up 44%.

••

Soprano@Soprano

9Lun

@Der_Dividenden_Monteur I need an interpreter for pictures like this

•

Paketknecht@Paketknecht

9Lun

One of the most solid companies in the world, very robust business model, Aa1 rating from Moody's. I'll be buying soon.

•

ThemenmitKopf@topicswithhead

9Lun

hahha I also have a comparison, but I'm still not sure what to conclude. France with the taxes is just abnormal

•

ThemenmitKopf@topicswithhead

9Lun

@topicswithhead in addition, registered shares receive 10% more dividends after 2 years, which is actually super strong if you weren't in FR

••

Soprano@Soprano

9Lun

@topicswithhead To be honest, I'd rather they didn't pay any dividends at all and did everything via share buybacks. At least then you wouldn't have to pay withholding tax. But I didn't know that, although I don't think it's usually worth registering registered shares with Trade Republic anyway.

••

ThemenmitKopf@topicswithhead

9Lun

@Soprano ne would also prefer share buybacks and no idea how it works with registered shares. Was. Nue funny to know that they are making an effort for longer holding shareholders or do you say it the other way around the insiders want more dividends 😶‍🌫️

•

gqx@gqx

9Lun

How fitting, I bought more yesterday 😇

•

Pezi@Pezi

9Lun

It feels like when you hear the word "tax", you keep your distance. Especially with French shares.

Almost everyone has American shares in their portfolio, which are also subject to withholding tax. Work out how much you would have to invest in $OR, for example, to have a tax disadvantage of 20 euros compared to American shares.

•

CrashBurner@Psychedelic_Sunflower

9Lun

@Pezi because. Above all, if you look at the overall performance, the financial transaction tax and the higher withholding tax do not make such a big difference that the share is no longer attractive

•

strategy_savant_624@strategy_savant_624

9Lun

In the custody account and withholding tax exemption via DKB

••