Portfolio increase

Yes!!!

The first purchase after the drastic drop on the Swiss market due to the SNB move to stop supporting the Swiss franc.

To benefit for a nice dividend and averaging down our position, we bought 510 shares of Swiss Re @ 79.65 CHF, which bring our average price at 81.77CHF.

Based on the UBS analyst as well as the site that I like to use to evaluate my stocks (http://www.4-traders.com), Swiss Re should give a dividend of 6.62 CHF. Which will give gross (before tax) a nice dividend of 7480.60CHF.

Which you imagine will be re-invested.

In a next post, I will update you on the increase of our tax advantage portfolio (3rd pillar), where we had 100K cash. So I will not loose the market opportunity.

see you soon, cheers

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5 thoughts on “Portfolio increase

  1. RA50,

    I’m happy to see you take advantage of the rapid drop in Swiss stock markets!

    Just a couple of days ago I was looking at Nestlé, Novartis and Roche, but now I’m happy I didn’t – even though the currency drop and stock drop would cancel each other out in my case. I’m waiting until trading is less volatile to add these three Swiss companies to my portfolio.

    Best wishes,
    NMW

    Like

    • NMW,

      Yes you did well to wait, but looking at values of Roche and Novartis now, I would not wait to much.
      Regarding Nestlé, I don’t know how much they will be impacted by the Swiss franc. Probably much more that the 2 others.

      Good weekend, from Snowing Switzerland

      Like

  2. Hey there,
    I have recently been looking into Reinsurance as well. Swiss Re and Munich Re at the forefront. Comparing those two I found they are pursuing entirely different strategies in their Reinsurance businesses. Munich Re is giving up market share when they feel they cannot underwrite at a profit, whereas Swiss Re is conducting Business like crazy to gain share, while it is also happy to underwrite a loss.
    Even though I very much liked what is going on at Munich Re in tough times like that I decided not to invest, since I believe tough times ahead for the reinsurance business, which is pressured by new entrants searching for yield.

    What do you make of Swiss Re´s underwriting and have you considered looking also Into Munich Re?

    Like

    • Hi,

      Thans for the comment and analysis of these 2 great re-insurance companies.

      Our strategy at the moment is to focus on the Swiss market to avoid having ex-change issues, so Munich Re is not in our watch list for now.

      The underwrite loss of Swiss Re should create problem for the next future of company. What I really have surprise like most analyst was the share repurchase program that Swiss Re is starting. So this is good for us investor as the share continue to go up and provide more dividend as well.

      So what is you investing strategy?

      Nice to have you by our blog and best regards,

      RA50

      Like

      • Completely with you that this is not of any immediate concern. It remains to be seen which company is on the right side there! However Munich Re also initiated a what I believe was a 3bn. repurchase Program.

        What currencies are concerned. I guess this is tough on you right now. With pretty much everyone easing and the SNB stopping its balance-sheet expansion by dropping the 1.20 target. Still I think this is a zero sum game most of the time. Swiss Re´s international earnings for example will be pressured by a strong franc, which probably takes down the shareprice.
        Munich Re will have a tailwind, because of the weak Euro, which is probably one of the reasons why shares have rallied nicely this year. A relative strengthening of the franc vs the euro would surely take some gains off here. But still companies having a diversified revenue base should give you at least some protection.

        I am myself invested into purely U.S. companies since I haven´t found what I was looking for in Germany, where I live. I thought a lot about the currency issue, of what would happen if the dollar weakend/strengthend significantly and my conlcusion is that buying Dollar Assets that have large portions of international revenue is as good as a hedge as buying Euro denominated assets.

        Grüße

        Like

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