Courage to be far-sighted with these stocks

Only for a short time did the readership doubt my repeated purchase recommendation regarding Swissquote (SQN SW) when the stock did not shoot straight up on the Swiss stock exchange. With an investment return of +81.4 percent over the last twelve months, there is no point in complaining, even considering that the Swiss stock market index would only have allowed you to gain 8.9 percent in the same period. My quantitative models assume that the operating result will improve from 223.3 million francs to 402.6 million between 2021 and 2026. (Fundamental valuation discount)

How did I initially have to justify myself when I came across the card of the American private equity house KKR (KKR US): Today, with an investment return of +378.8 percent over the last five years, all complaints are misplaced. My latest quantitative analyses assume that operating profit will improve from 4.8 billion dollars to 8.7 billion between 2021 and 2026. The real accolade came with the stock’s inclusion in the S&P 500 Index. (Reloading despite jamming)

Your perseverance in the Siegfried Holding (SFZN SW) is now regularly rewarded: +200 percent over the last five years. When I first made this stock attractive to you more than eleven years ago, the big holdrio started, who would think of betting on this paper to motivate small investors to buy. It’s a cheeky thing when we were able to find out that after the last reporting date, UBS Asset Management doubled its commitment in one fell swoop and now has 6 percent of the total share capital. Here, the operating result should improve from 124.4 million francs to 257.9 million between 2021 and 2026. (Reloading in tow with UBS)

Again and again I have to give my readers written tranquilizers when it comes to the Dutch technology value ASM International (ASM NA) is not going up in a flash. Yes, the stock has lost a whopping 16.7 percent on the stock market over the last 90 days, but an investment return of +652.2 percent over five years speaks volumes. The short-term setback is like a small rockfall when successfully climbing Mount Everest without breathing apparatus, where every twitch of nature would send you into panic mode. (Reload)

When it comes to cheap mortgages, Zurich Cantonal Bank Great offers. This is about the environmental loan, which gives you a reduced interest rate over a longer period (maximum 5 years). In the meantime, my price breaker for the five-year fixed mortgage has reached 1.3 percent, which will boost demand. (Sensational thing)

Questions from readers to the financial advisor

All questions from readers will be answered. Write financial advisor François Bloch an email at: [email protected].

I always read your recommendations in “Switzerland at the weekend” with interest. I recently received a large sum and could invest around 500,000 francs over 5 to 10 years. As I am already 71 years old, married and childless, I don’t want to take too many risks. However, it would be nice to be able to cushion inflation as little as possible. I will soon be having a consultation with my bank, where I already have a deposit. Would you rather invest in pure shares rather than funds? What do you think of structured products, which you often recommend in the newspaper? I am aware that the risk with structured products is relatively high.

The topic of inflation should be a key factor in your considerations. Our focus should be on Swiss blue chips that have a dividend yield that is twice as high as the current inflation rate. Solid stocks such as UBS, Zurich, Holcim or Swiss Re are the focus for you here. To smooth out price fluctuations, it is important to use covered calls above your purchase price. For strategic reasons, I recommend that you collect dividends on an annual basis and invest in the best stock in your portfolio over the last twelve months. Structured products make sense in a portfolio; the term is no longer than 12 months and the barrier is no higher than 60 percent. When it comes to stocks, it is important that you only invest in SMI stocks. This strategy may account for 20 percent of your total portfolio. Interest income from these products, which have an extremely high yield, is not to be reinvested.

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