stocks for life
Why you need to make even more targeted investments
05/04/2022, 18:07
Gone are the days of easy returns. Investors need to take a closer look at which stocks and asset classes they invest in – and understand the political context. The new “Capital” podcast “Aktien fürs Leben” starts right there.
They still exist even in uncertain times, you just have to look for them more closely: stocks that are worth investing in, that promise long-term returns. Of course, their prices can also fluctuate, but over longer periods of time they promise good performance and solid returns – and above all stable and increasing dividends over time, which also act as a direct inflation compensation.
“Shares for life” is what the business magazine “Capital” calls such papers that it filters out of thousands of companies once a year. For the ranking, “Capital” analyzes the global stock index Stoxx 1800, which contains 1800 companies from Europe, North America and Asia. The focus is on established business models that have created value for shareholders over several economic cycles. In the last ranking, the top 50 stocks included the industrial gases producer Air Liquide, the semiconductor manufacturer Intel, the armaments giant Lockheed Martin and the pharmaceutical companies Johnson & Johnson, Sanofi and Roche. But companies that are relatively unknown in this country have also made it onto the list, such as the rice wine producer Takara and the telecommunications company KDDI from Japan or the Canadian National Railway.
The format has been around since today also as a podcast: Every Wednesday, “Capital” editor-in-chief Horst von Buttlar examines the markets together with investor and author Christian Röhl. However, the podcast is not about quick bets, but about long-term trends, about the world behind the stocks. “We are dedicated to strategies for long-term wealth accumulation and preservation,” says von Buttlar. “We look at the world as a whole, and not just at the course.” Röhl adds: “We leave the quick in and out to others. We don’t want to speculate, we want to invest. Our preferred holding period is forever, to paraphrase Warren Buffett. But that only brings returns if you regularly make sure that the conditions are still right, both at the company and in the environment.” So it’s only logical that in the opening sequence with Coca-Cola one of the long-standing favorite stocks of the investment icon from Omaha is under scrutiny.
The basic idea of ”Shares for Life” is based on a database, which “Capital” has been collecting and updating for seven years. Solid balance sheets with strong profits and cash flows are the focus. And investors can’t overpay for all of this, which in recent years has been a hurdle in highly valued stock markets where popular stocks fail — which doesn’t mean they’re bad companies. Tech stocks, which are missing from the ranking due to a lack of (sufficiently long) dividend history, should of course not be missing from the new podcast. At the start, it is about the competition between the streaming giants Netflix and Disney. And of course the two hosts also take up current topics such as the commodity rally and commodity stocks and warn of loss traps.
The idea of the podcast is to expand the valuable database with current topics and political analyzes and to bring together the expertise of “Capital” and Christian Röhl. Because the markets are volatile, turbulent, strongly politically driven in these times – and only who from the daily flood of news If you distil the relevant facts, you can focus your wealth accumulation on risks such as inflation, interest rate hikes, deglobalization or climate change.