Good morning everyone,

I had something like a company outing last night, actually it was just a big meal with no other program.

I noticed something about myself and am now thinking (worrying?) a lot about it.

😰

When the invitation to the company outing came, it was immediately clear to me that I wouldn't be going this time, as I don't enjoy such outings and see them as a waste of time.

But then I thought about my client, who I like, and how frustrating it must be for her if she organizes a company outing and no one comes or everyone cancels, so I said yes and took part.

I was able to have a good chat with my table neighbors on site, but I was still bored and I was very happy when it was over.

Up to this point, I was still of the opinion that most people attend such events out of politeness and a sense of duty.

But I was proved wrong, on the return flight everyone was so happy and euphoric that they even sang out loud. I can't put it all into words. In any case, the majority of the group must have really enjoyed this event.

That gave me a lot to think about and now I'm wondering whether I might have a social weakness or something and therefore don't enjoy such events?

Why am I writing this in a financial forum? To put it in @Ji_hyun 's words, the brightest minds I know are gathered here and I would like to know your opinion.

Have a nice weekend

ASML $ASML (-0,72%) (semiconductor equipment)

Visa $V (-0,16%) (payment transactions)

Mastercard $MA (-0,3%) (payment transactions)

Moody's $MCO (-1,54%) (credit ratings)

S&P Global $SPGI (-0,29%) (credit ratings and indices)

Hermès $RMS (+0,11%) (luxury goods)

Fair Isaac Corporation $FICO (-1,51%) (credit scoring)

Coca-Cola $KO (+2,3%) (beverages)

Apple $AAPL (+0,26%) (consumer electronics and technology)

Nvidia $NVDA (-3,63%) (AI and GPUs)

Also also worth mentioningbut not in the top 10:

Transdigm $TDG (-1,3%) (aerospace)

MSCI $MSCI (+1,13%) (financial services)

Cadence $CDNS (-4,03%) (EDA software)

Synopsys $SNPS (-3,7%) (EDA software)

Ferrari $RACE (+0,02%) (luxury cars)

What do you think? Have I forgotten an interesting company / share?

The world's population is getting older and older, an irreversible demographic change with considerable economic consequences.

This article is intended to provide investment ideas and impetus. The stocks mentioned do not, of course, constitute investment advice, but merely serve as examples of potential beneficiaries of demographic change. Historical developments are no guarantee of future returns.

The main source is the short analysis "How to invest as the global population ages" by Goldman Sachs [1], which, however, does not name any specific stocks.

I have also added additional sources and charts.

__________

🌍 Demographic change: growth and ageing of the world's population

The world's population will grow to almost 10 billion people by 2050. But it is not just the number of people that is increasing, their age structure is also changing dramatically. [2]

Increase in the older population:

• The proportion of people aged 60 and over is rising from 8% (1950) to 21.5% (2050).
• In 2050, 2.1 billion people will belong to the over-60 age group.

Source: [2]

Regional differences:

Europe & North America have the oldest populations & remain the most affected demographically.

Latin America, the Caribbean & Asia: The proportion of over-60s will more than double between 2015 and 2050, reaching around 25 %.

Africa remains the youngest region: in 2015, there were 21 countries worldwide with a birth rate of 5 children per woman, 19 of which were in Africa. However, it should be noted that current statistics from 2024 show that the birth rate per woman in Africa was already just 4.07 in 2023 and could fall to 2.79 by 2050. [3]

While industrialized countries are struggling with an ageing society, Africa remains the most dynamic and youngest region in the world. This development can also have an economic impact and open up new investment opportunities. [2]

Goldman Sachs also comments in the article with similar figures, according to which the global population is expected to increase by around 20% by 2050 and senior citizens will make up a disproportionate share. The number of people over the age of 65 is expected to double from 800 million to 1.6 billion during this period. [1]

In view of this demographic development, there are opportunities to benefit from precisely this trend. Opportunities lie in targeted investments in sectors that could benefit from the growing proportion of older people.

🚑 Healthcare: A growing market worth billions

Facts:

• In the USA, people over the age of 65 already account for 36% of healthcare expenditure, although they only make up 18% of the population. Age-related diseases such as cardiovascular disease, diabetes and neurological disorders are driving up costs. [1]
• Alzheimer's cases are even expected to double worldwide by 2050.

Possible profiteers:

Medical technology

• Medtronic ($MDT (+2,67%) ) - (cardiac pacemakers, diabetes technology)
• Stryker ($SYK (-0,56%) ) - (orthopaedic implants, surgical devices)
• Siemens Healthineers ($SHL (+0,45%) ) - (imaging, diagnostics)

Pharmaceuticals

• Novo Nordisk ($NOVO B (+5,32%) ) - (Diabetes & Obesity)
• Eli Lilly ($LLY (+0,32%) ) - (Alzheimer's, Diabetes)
• Roche ($ROG (+1,31%) ) - (Oncology, Diagnostics)

🏡 Senior Living & Care: Bottlenecks in nursing homes worldwide

Facts:

The UK has a shortfall of over 30,000 senior units by 2028. [1]

In Germany, France and Italy there is a shortage of nursing home places due to the ageing population. [1]

In the US, only 2% of people over 65 live in nursing homes, leading to an increasing demand for home care and telemedicine. [1]

Potential beneficiaries:

Care providers

• Brookdale Senior Living ($BKD (-0,96%) ) - (senior living, care facilities)

Homecare

• ResMed ($RMD (-0,09%) ) - (sleep apnea, ventilators)
• Fresenius Medical Care ($FME (+0,32%) ) - (dialysis, home therapy)
• Coloplast ($COLO B (+0,16%) ) - (ostomy care, incontinence products)

Telemedicine

• Teladoc Health ($TDOC (-8,8%) ) - (virtual doctor visits, digital health solutions)
• Hims & Hers ($HIMS (-26,15%) ) - (telemedicine & e-health)

Anti-Aging

• L'Oréal ($OR (+1,22%) ) - (skin care, cosmetics)
• Estee Lauder ($EL (+1,18%) ) - (luxury cosmetics, skin rejuvenation)
• Revance Therapeutics ($RVNC ) - (Botox alternative, wrinkle treatment)

🚢 Leisure & consumption: The new "silver economy"

The following chart shows the distribution of wealth in Germany depending on the age of the main income earner. [4]

It is clear that older people tend to have higher wealth than younger age groups. This is reflected in the significantly higher values for the percentiles for age groups aged 50 and over. In particular, the groups aged between 50 and 74 have the highest assets.

The trends are also similar internationally:

• The wealth of older people is 3x that of millennials.
• Over-60s control more than 50% of consumer spending in many developed countries.
• The global silver economy could reach a volume of USD 15 trillion by 2030 (Oxford Economics).

This observation underlines the economic importance of the older generations and their central role in wealth distribution and consumer spending.

Possible beneficiaries:

Luxury

• LVMH ($MC (+0,4%) ) - (fashion, jewelry, wine & spirits)
• Hermès ($RMS (+0,11%) ) - (Exclusive Fashion & Accessories)
• Richemont ($CFR (+0,31%) ) - (Swiss luxury watches & jewelry)

Cruise (Over 60s book a third of all cruises worldwide [1])

• Royal Caribbean ($RCL (-3,06%) ) - (Cruises for seniors & families)
• Carnival ($CCL (-5,34%) ) - (mass market cruises)
• Norwegian Cruise Line ($NCLH (-5,77%) ) - (premium cruises)

Motorhome manufacturers/ recreational vehicles (47% of motorhome users are over 55 years old, In the UK, two thirds of over 55s have a motorcycle license, which may indicate a growing market for motorcycles and accessories. [1])

• Thor Industries ($THO (-1,13%) ) - (motorhomes, campers)
• Winnebago ($WGO (-1%) ) - (motorhomes & caravans)
• Harley-Davidson ($HOG (-0,68%) ) - (motorcycles and entry-level electric motorcycles)

🤖 Technology & automation: solution to the labor shortage

Facts:

The labor shortage caused by an aging society is becoming a global challenge. Automation, AI and robotics could help close the skills gap. [1]

Profiteers:

• ABB ($ABBNY (-0,56%) ) - (industrial robotics, automation)
• Fanuc ($6954 (+0,98%) ) - (robotics, factory automation)
• Intuitive Surgical ($ISRG (-1,15%) ) - (robot-assisted surgery)
• Siemens ($SIE (-0,45%) )- (automation & also medical technology)

🧠 Conclusion:

Demographic change offers long-term investment opportunities. Early investment in the right sectors can benefit from rising spending on health, care, leisure and technology.

I myself am still looking for one or two individual investments and am a little annoyed that I didn't get into Hims & Hers earlier, although I have been on the verge of doing so several times. Apart from the luxury segment with LVMH, the portfolio also includes Siemens as a conglomerate in the field of automation.

Do you explicitly take demographic change into account in your investments, e.g. in the form of individual shares?

Which shares do you have in your portfolio or do you still see them as an opportunity?

Thanks for reading!

_________

Sources:

[1] https://www.goldmansachs.com/insights/articles/how-to-invest-as-the-global-population-ages

[2] https://www.bpb.de/kurz-knapp/zahlen-und-fakten/globalisierung/52811/demografischer-wandel/

[3] https://de.statista.com/statistik/daten/studie/1343516/umfrage/entwicklung-der-fertilitaetsrate-in-afrika/

[4]

https://www.iwd.de/artikel/mit-dem-alter-waechst-das-vermoegen-489710/

I was able to leave the champagne in the fridge yesterday after LVMH $MC (+0,4%) fell short of expectations in terms of profit and net income, losing up to -5% at times. The share recovered slightly later in trading. Things don't look so rosy today either. In the long term, however, I am not worried, even if the jump above €800 may take a little longer.

Let's start with the facts:

I have taken the time and trouble to read through the annual reports and listen to the earnings call:

Summary and classification from the published annual reports of LVMH "Presentation
2024
Annual Results" [1] and "Financial Domcuments" [2]. Page references in the source reference refer to the reports mentioned separately in [Source 1 & 2].

First of all, a brief overview of how the % figures in the annual report are to be understood, as this is important in my opinion.

📈 Percentage figures: "Published" vs. "Organic"

Two types of growth figures are given in the LVMH reports:

1 . Published development (Published)

• This figure shows the change in sales compared to the previous year in euros.
• It takes into account exchange rate fluctuations (e.g. a weak US dollar or yen) and changes in the scope of consolidation (e.g. due to acquisitions or sales of parts of the company).
• Example: A fall in the US dollar against the euro means that sales from the USA are worth less in euros, even if they have remained stable in the region. *(For a detailed explanation, please refer to the "Appendices" at the end of the post).

2 . Organic development (Organic)

• This figure shows the "real" growth of the core business.
• Exchange rate effects and changes in the company portfolio are deducted.
• It better reflects the extent to which the company has actually grown or declined in its markets.

Why the difference is important:

Published change gives a complete picture of external factors. Organic change, on the other hand, shows operational performance and is a better indicator of a company's long-term stability.

📊 Business figures 2024: overview

• Sales: EUR 84.7 billion (-2% published, +1% organic, exceeded expectations of EUR 84.3 billion) [2, p. 2; 3]

• Operating profit: EUR 19.6 billion (-14% published, -9% organic, below expectations of EUR 20.3 billion) [1, p. 23; 2, p. 7; 3]

• Net result: EUR 12.6 billion (-17% published, below expectations of EUR 13.7 billion) [1, p. 22] (More on increased marketing & administration costs later in the text)

• Operating margin: 23.1% (decline of 3.4 percentage points, but still strong compared to the industry) [2, p. 7]

Regional performance: [1, p. 17-18]

• Japan: The strongest market with +28% organic sales growth, supported by a weak local currency and robust local demand.
• Europe and USA: Stable development of +2% and +3% organic sales growth respectively, despite uncertain consumer sentiment.
• Asia (excluding Japan): Decline of -10% organic, mainly due to weaker demand in China.

Main factors for profit decline explained: (Transcript Earnings Call, CFO: Jean-Jacques Guiony)

LVMH reports a 17% drop in profits to 12.5 billion euros compared to the record previous year. This is mainly due to several factors:

1 . Increase in costs:

• Operating costs increased by 2 %, which was higher than organic sales growth and led to a reduced operating margin.

2 . Currency and price fluctuations:

• Currency movements, mainly due to the US dollar and the absence of price increases contributed to the decline in gross margin, which fell by 180 basis points (-1.80%)

3 . losses in certain areas:

• Wine & Spirits: a decline of -36% due to lower volumes, prices and mix ratios, although costs were reduced.
• Duty Free Shoppers (DFS): Heavy losses, mainly due to weak Chinese tourism in Hong Kong and Macau.
• Non-recurring charges: Losses due to restructuring in Duty Free Shops (DFS), the withdrawal from brands such as Stella McCartney and Off-White, as well as expenses for irregular events, e.g. the Olympic Games and employee share plans.

4 . Higher expenses:

• Administrative expenses increased by 9% and investment in new stores and marketing costs were maintained or increased slightly (+1%), further impacting profit.
• Labor costs increased, but could not be offset by price increases (or should not be offset by price increases, according to the call).
• In addition, costs increased due to store openings already planned in 2021-2023, which increased the cost base.

Additional management decision:

• LVMH faced a difficult decision: to cut costs more drastically, but this would have sent the message that a "crisis" is structural in nature, i.e. longer-term and profound. This would have meant the company adopting a very cautious approach to spending and investment in order to prepare for a prolonged crisis.

• Instead, the management emphasizes that the "crisis" is only temporary and that it is important to remain flexible in order to adapt to changing circumstances. They did not want to take too drastic measures that could damage the company in the long term, especially in areas such as marketing and budget planning. These should not be cut too severely in order not to jeopardize future growth potential and competitiveness.

• Despite the decline in profits, LVMH was able to increase its cash flow by 3.4 billion euros, which led to a reduction in debt.

• In addition, a stable dividend of 13 euros per share was proposed in order to offer shareholders a constant return in difficult times.

Summarized so far: LVMH's profit decline resulted from an imbalance between cost increases and sales growth, as well as specific challenges in some business units.

👜 Products & segments: Highlights 2024

1 . Fashion & leather goods

• Sales reached EUR 41.1 billion (-3% published, -1% organic). Louis Vuitton shone with innovative collections, including Pharrell Williams' "The World is Yours" designs. Christian Dior combined tradition and modernity with its spring/summer 2025 collections, inspired by Amazons and Scottish history. A collaboration with artist Takashi Murakami and the opening of a flagship store on the Champs-Élysées are planned for 2025. (2, S. 11-12)
• Further store expansions in addition to the new flagship store on the Champs-Élysées are planned to further strengthen the global presence in Tokyo and Milan.

2 . Perfumes & Cosmetics

• In the Perfumes & Cosmetics segment, sales rose to EUR 8.4 billion (+2% published, +4% organic). Dior Sauvage continued to assert itself as the world's leading men's fragrance, supported by the launch of "Sauvage Eau Forte". Guerlain expanded its successful "Aqua Allegoria" range and focused on sustainable production, including regenerative agriculture for the flowers used in the fragrances. (2, S. 13-14)

3 . Wines & Spirits

• Sales in the Wines & Spirits segment fell to EUR 5.9 billion (-11% published, -8% organic), as weaker demand in China and the USA weighed on the business. Nevertheless, Moët Hennessy impressed with new products such as Dom Pérignon Vintage 2015 and other prestige cuvées. For 2025, LVMH plans to further expand the customer experience, including through innovative marketing initiatives such as the collaboration with Formula 1. (2, p. 10)

4 . Watches & Jewelry

• In the Watches & Jewelry division, LVMH generated sales of EUR 10.6 billion (-3% published, -2% organic). Tiffany & Co. opened its renovated "Landmark" flagship store in New York, while Bulgari set new standards with its "Aeterna" collection and the world's thinnest watch design. (S. 14-15)

5 . Selective Retailing (Sephora & DFS)

• In the Selective Retailing division, sales rose to EUR 18.3 billion (+2 % published, +6 % organic). Sephora recorded double-digit growth in North America and Europe and relied on innovative technologies such as AI tools to improve the customer experience. (2, S. 15-16)

🌎 Sustainability in case anyone is itching:

• Reduction of CO₂ emissions by 55% compared to 2019 (target for 2026 already exceeded).
• Biodiversity projects will be expanded to five million hectares by 2030 (2024: 3.8 million hectares)
• Focus on circular design: by the end of 2024, 31% of materials were already sourced from recycled sources (2, S. 4)

💰 Financial strength and key figures

Cash and debt

• Cash position: EUR 9.6 billion (+24% compared to 2023).
• Free cash flow: EUR 10.5 billion (+29% compared to 2023)
• Net financial debt: decrease to EUR 9.2 billion (-14% compared to 2023), resulting in a debt ratio of 13.3
• Available credit lines: EUR 10.8 billion, sufficient to cover current liabilities

Inventories

• The total value of inventories rose to EUR 23.7 billion, an increase of 3.1 %. This is primarily due to strategic stockpiling in the fashion and perfume sectors.

📈 Classification in the stock market environment

LVMH shares have been under pressure in recent months, despite strong fundamentals:

• Macroeconomic uncertainties: Interest rate hikes and a weaker buying mood for luxury goods are weighing on the sector.
• Declining figures in Asia: Weak sales in China are dampening market sentiment.
• Competitive pressure: Competitors such as Hermès $RMS (+0,11%) are reporting stronger growth, which is increasing the pressure on LVMH.

LVMH has reported a 17% drop in profits, not a good sign at first glance. But when you look at the details, it becomes clear:

The problems are largely temporary.

• Macro factors: Currency movements (strong USD), higher costs and weaker demand in some segments, notably Wine & Spirits (-36%) and DFS (Travel Retail).
• No structural problem: Management has deliberately cut non-aggressive costs in order not to jeopardize long-term growth potential (e.g. marketing & expansion).
• Operating margin under pressure: Costs increased by 2%, while sales declined slightly (Published, organic +1 %)which led to a decline in the margin.

⚡ Why I remain optimistic in the long term:

• Strong brands & pricing power: LVMH owns premium brands with high pricing power, once demand recovers, the company can expand margins again.
• China recovery as a catalyst: Weak Chinese tourism is weighing on business, but consumer behavior should normalize in the medium term.
• Global demand shift: Luxury is not dependent on "one" country; if one region weakens (e.g. due to US tariffs on European luxury goods), LVMH can expand sales in other markets (e.g. in the Middle East, South East Asia or Europe). In addition, different production locations and logistics strategies can be used to circumvent trade barriers.
• Solid financial position: Despite the decline in profits, cash flow remains strong (€10.5 billion), debt has been reduced and the dividend remains stable at €13.

📉 It may remain bumpy in the short term, but LVMH is a quality company with a strong capacity for innovation, which will remain in demand even in difficult times. I am looking forward to the future plans of the industry leader, which remains on course for success with a strongly growing brand presence. For long-term investors, the "price slide" could therefore be more of an opportunity than a risk. (Of course, my personal opinion does not constitute investment advice or a recommendation to buy or sell. 🙂)

Finally, Bernard Arnault was also optimistic about the future:

"LVMH will continue to focus on creativity, excellence and agility to extend its leadership in the luxury market. Despite global uncertainties, the Group sees further potential for sustainable growth and long-term success."

🎉 Thanks for reading! From here on there are attachments, examples & original slides

_______________

*Exchange rate fluctuations explained (example)

When a company like LVMH sells products in the USA, sales are generated in US dollars (USD). However, since LVMH publishes its financial report in euros (EUR), these sales must be converted into euros.

What happens if the US dollar depreciates against the euro?

1 . Before the devaluation: 1 USD = 0.95 EUR

• A turnover of USD 100 million would correspond to EUR 95 million.

2 . After the devaluation: 1 USD = 0.90 EUR

• The same turnover of USD 100 million now corresponds to EUR 90 million.

➡️ Although LVMH sold exactly the same amount in the USA, sales in euros appear lower.

At the beginning of 2024: 1 USD = 0.9060 EUR.

Low on August 23: 1 USD = 0.8927 EUR.

Increase until December 31: 1 USD = 0.9662 EUR.

_______________

Sources:

[1] LVMH: "Presentation" to " 2024 Annual Results"

https://lvmh-com.cdn.prismic.io/lvmh-com/Z5j825bqstJ998qD_LVMH-2024FullYearresults.pdf

[2] LVMH: "Financial Domcuments"

https://lvmh-com.cdn.prismic.io/lvmh-com/Z5kVBpbqstJ999KR_Financialdocuments-December31%2C2024.pdf

[3] Expected results 2024

https://stock3.com/news/lvmh-aktie-nach-zahlen-deutlich-unter-druck-2-16085679

If you've made it this far, you can still see the original slides from the presentation of my favorite products, or rather those of my wife 😵‍💫.

$CFR (+0,31%)
$BRBY (-4,28%)
$KER (+1,01%)

Tonight presents LVMH
$MC (+0,4%) presents its results for the 2024 financial year and Q4.

• Financial release after the close of the Paris stock exchange
• 18.00 Earnings Call via live webcast

https://www.lvmh.com/en/financial-calendar/2024-full-year-results

Analysts expect sales for the fourth quarter of 23.2 billion euros and earnings per share (EPS) of 17.44 euros [1].

For the full year 2024, turnover of 84.2 billion euros and EBITDA of 25.97 billion euros is forecast [2].

Morgan Stanley raised its rating for LVMH to "overweight" yesterday and set the target price at 820 euros (+14%). As a result, the share price rose by 3% and is moving back towards the 800 euro mark [1].

Market development:

The luxury sector recently experienced an upswing after Richemont $CFR (+0,31%) the parent company of Cartier, presented impressive figures.

In the third quarter, which ended in December 2024, turnover rose by 10% to 6.15 billion euroswhich exceeded analysts' expectations [3].

The positive results also boosted other luxury brands such as LVMH, Kering $KER (+1,01%) and Hermes $RMS (+0,11%) [4].

The US market is expected to be a key driver of LVMH's growth, especially given the continued weakness of the Chinese market [5].

USA: A sustained recovery in demand is boosting sales.

China: The recovery is slower than expected, but competitors such as Burberry $BRBY (-4,28%) are reporting stabilized sales.

Fashion & Leather Goods: Louis Vuitton and brands such as Loewe and Rimowa continue to perform strongly.

Risks in brief:

Morgan Stanley warns of potential burdens from tariffs on luxury goods or consumer restraint, particularly in China.

Should growth at Louis Vuitton stagnate, this could have a negative impact on the entire Group.

Portfolio:

LVMH is the second-largest single position in my portfolio after getquin Deepdive with just under 5%, consisting of direct and indirect investments, behind Bitcoin $BTC (+0,55%) .

I am therefore looking forward to the results tonight and am betting on a strong Q4.

The battle for Europe's most valuable company continues... can LVMH still surprise and make the leap over the €800 mark or are expectations already priced in?

___________________

Sources:

[1]

http://de.investing.com/equities/l.v.m.h.?

[2]

https://de.marketscreener.com/kurs/aktie/LVMH-4669/termine/

[3]

https://www.richemont.com/investors/results-reports-presentations/

[4]

https://www.investopedia.com/european-luxury-stocks-jump-on-richemont-record-quarterly-sales-8775521

[5]

https://www.reuters.com/business/retail-consumer/luxury-groups-pin-hopes-us-china-weakness-persists-2025-01-15/

Dear community,

I have been building up my portfolio step by step since summer 2020. I'm starting to feel comfortable with the weighting of the individual sectors and also with the geographical distribution. My approach is buy and hold, but I have also made corrections and unfortunately paid a lot of empty money, especially in the early days. I have invested in stocks such as $SPGI (-0,29%) , $V (-0,16%) , $ISRG (-1,15%) ,$AMZN (-2,39%) , $IVSB , $NVDA (-3,63%) , $ABBN (-0,07%) and unfortunately sold them again. When I look at the returns on these shares, I feel dizzy😆 Perhaps you have any tips, suggestions or criticism for my portfolio? Do you have any stocks that you sold and regretted afterwards? But I have to say that I have learned a lot over the years and this is certainly very valuable🤓

I still have the following stocks on my watchlist and would buy them immediately in the event of a major setback: $CSU (-0,46%)
$WKL (-1,49%)
$RMS (+0,11%)

LVMH: $MC (+0,4%)

Hermès: $RMS (+0,11%)

ASML: $ASML (-0,72%)

Where are you involved?

⬆️⬆️⬆️

- BERENBERG raises the price target for SIEMENS from EUR 215 to EUR 245. Buy. $SIE (-0,45%)

- BERNSTEIN raises the price target for SIEMENS ENERGY from EUR 15 to EUR 22. Underperform. $ENR (-4,27%)

- JPMORGAN PUTS SARTORIUS ON 'POSITIVE CATALYST WATCH' - 'OVERWEIGHT' $SRT (-2,19%)

- GOLDMAN raises the price target for FRAPORT from EUR 87 to EUR 90. Buy. $FRA (+0,51%)

- UBS raises the price target for NORDEA from EUR 145 to EUR 146. Buy. $NDA FI (+0,99%)

- BERNSTEIN raises the target price for SCHNEIDER ELECTRIC from EUR 275 to EUR 280. Outperform. $SU (+0,5%)

- UBS raises the target price for WPP from GBP 6.80 to GBP 7.20. Sell. $WPP (+0,27%)

- BERNSTEIN raises the price target for ALSTOM from EUR 17 to EUR 24. Market-Perform. $ALO (-2,19%)

- STIFEL upgrades HERMES from Hold to Buy and raises target price from EUR 2150 to EUR 2560. $RMS (+0,11%)

- INFINEON +4.2% - 'TOP PICK' OF THE UBS $IFX (-1,86%)

⬇️⬇️⬇️

- RBC downgrades UNILEVER from Sector-Perform to Underperform and lowers target price from GBP 48 to GBP 40. $ULVR (+0,79%)

- BERNSTEIN downgrades ABB from Market-Perform to Underperform and lowers price target from CHF 46 to CHF 45. $ABBN (-0,07%)

- BERNSTEIN downgrades SIGNIFY from Outperform to Market-Perform and lowers price target from EUR 30 to EUR 24. $LIGHT (+0,14%)

- DEUTSCHE BANK RESEARCH lowers the price target for UMICORE from EUR 10.50 to EUR 10. Hold. $UMICY (+0%)

- DEUTSCHE BANK RESEARCH lowers the price target for DOCMORRIS from CHF 45 to CHF 25. Hold. $DOCM (-1,46%)

- BERENBERG lowers the price target for HORNBACH HOLDING from EUR 100 to EUR 94. Buy. $HBH (-0,51%)

- CITIGROUP downgrades ROLLS-ROYCE from Buy to Neutral. $RR. (-1,27%)

- JEFFERIES lowers the target price for BHP GROUP from GBP 22.50 to GBP 21.50. Hold. $BHP (-0,19%)

- JEFFERIES lowers the price target for GLENCORE from GBP 5.50 to GBP 4.50. Buy. $GLEN (-1,81%)

- JEFFERIES lowers the target price for RIO TINTO from GBP 64 to GBP 60. Buy. $RIO (-0,51%)

- BERENBERG lowers the target price for NOVO NORDISK from DKK 975 to DKK 725. Hold. $NOVO B (+5,32%)

⬆️⬆️⬆️

- DEUTSCHE BANK RESEARCH raises the price target for NIKE from USD 82 to USD 84. Buy. $NKE (-0,48%)

- RBC raises the price target for ALPHABET A SHARE from USD 210 to USD 235. Outperform. $GOOGL (-2,28%)

- RBC raises the price target for AMAZON from USD 225 to USD 255. Outperform. $AMZN (-2,39%)

- RBC raises the price target for META from USD 630 to USD 700. Outperform. $META (-1,11%)

- ODDO BHF raises the target price for MUNICH RE from EUR 540 to EUR 555. Outperform. $MUV2 (-0,6%)

- ODDO BHF upgrades HERMES to Neutral. Target price EUR 2315. $RMS (+0,11%)

- ODDO BHF raises the target price for AIRBUS from EUR 168 to EUR 180. Outperform. $AIR (-3,2%)

- ODDO BHF raises the price target for FRAPORT from EUR 58 to EUR 61. Outperform. $FRA (+0,51%)

- JPMORGAN raises the target price for FEDEX from USD 366 to USD 370. Overweight. $FDX (-5,06%)

⬇️⬇️⬇️

- GOLDMAN lowers the price target for NIKE from USD 97 to USD 91. Buy. $NKE (-0,48%)

- BOFA lowers the price target for NIKE from USD 95 to USD 90. Buy. $NKE (-0,48%)

- ODDO BHF downgrades CARBIOS to Neutral. $ALCRB (-0,25%)

- KEPLER CHEUVREUX lowers the price target for LANXESS from EUR 31 to EUR 30. Buy. $LXS (+0,14%)

- HAUCK AUFHÄUSER IB lowers the target price for DEUTZ from EUR 8.50 to EUR 7. Buy. $DEZ (-0,91%)

- BARCLAYS lowers the price target for VERTEX from USD 509 to USD 418. Equal-Weight. $VRTX (+0,82%)

- GOLDMAN lowers the price target for BIRKENSTOCK from 59.10 USD to 57.90 USD. Neutral. $BIRK (-3,71%)

- GOLDMAN downgrades TEAMVIEWER from Buy to Neutral and lowers target price from EUR 17 to EUR 12. $TMV (+1,21%)

The French stock market offers a large number of interesting stocks that are also very popular with investors.

Popular?

Well, yes,

Who wouldn't like LVMH, Sanofi, Air Liquid, Airbus, Safran, L'Oreal,

Essilor-Luxottica, Hermes, Danone, Pernod-Ricard and perhaps even more in your portfolio.

in the portfolio.

However, there are some hurdles and risks here.

On the one hand, we have to deal with the selection of stocks and the valuation and try to buy the stocks that we believe will rise in value at a favorable time.

Secondly, buying French shares is subject to French financial transaction tax (FTT) and 30% withholding tax on dividend distributions.

My optimization suggestion:

Instead of dealing with a large number of French shares and ending up doing everything wrong, I choose an ETF.

This has the following advantages, among others:

1 The individual share risk is spread.

2 Tax advantage for withholding tax, thanks to the double taxation agreement (see below)

3 Automatic rebalancing - the worst stocks are removed at regular intervals and new promising stocks are added to the ETF.

4 Low trading fees

Biggest disadvantage:

1 Most likely you will only achieve the average market return.

I have therefore opted for the Xtrackers CAC 40 LU0322250985 and will no longer buy French equities. Alternatively, the accumulating iShares MSCI France IE00BP3QZJ36 would also have been a good choice in my opinion.

Both ETFs offer a tax advantage, although you cannot avoid FTT. However, both Luxembourg and Ireland have a double taxation agreement with France. This means that the withholding tax on French dividends is reduced to 15%. Of course, this tax advantage applies not only to distributing ETFs, but also to accumulating ETFs.

I consider the already low TER of 0.2x% to be completely negligible, as both ETFs have had a positive TD for years.

In view of the weak performance of the current year, we could now be in a phase in which it could pay off to collect shares "cheaply" in order to benefit later from a higher personal dividend yield.

Conclusion:

I am selling LVMH and betting on the Xtrackers CAC 40 ETF to cover my entire exposure to France.

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