After BMW, Stern buys what’s contrary: Peugeot
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Why is BMW contrary to Peugeot? Because BMW has a very different strategy from Peugeot. While BMW stands in their advertising for Fahrvergnügen (translated as “driving pleasure”), Peugeot stands for Reisevergnügen (translated as “travel pleasure”). Not quite the same as Obermatt CEO Dr Hermann J. Stern will explain.
Peugeot just announced a new car sharing service for the USA, which isn’t something “cool” for the driver but is something cool for anyone in need of transport because it allows to have mobility without owning a car.
Therefore, buying Peugeot stock now (April 15, 2016), just after having bought BMW stock last week, could be seen as a special form of diversification. It’s a diversification of business strategies. What strategy will succeed? Stern can’t tell and neither can automotive experts. If they could, they would immediately retire with this knowledge.
Apart from this rather theoretical justification, Stern also has his emotional reasons. When Stern bought BMW last week, someone mentioned they are a happy Peugeot driver. Coincidence? Perhaps, but still a good reason to buy a stock that is ranked first on Obermatt’s latest, Top 10 stocks of France.
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