Sunday 29 December 2013

Personalized Index Fund B: December 2013

PIF B, P/E, P/B and dividend

The Personalized Index Fund B or PIF B was created by looking at three things. The P/E, the P/B and the dividend payment. So the lowest none negative P/E gave value 1 and the highest P/E alternatively the most negative gave value 30. The same was done with P/B and with dividend. By adding the score together I ended up with a list of DAX companies where the lower the total score the cheaper the company was. This "fund" was also started back on the 16.04.2013 just like PIF A but I only look at the changes occurring with share prices and have not "bought" fake shares according to a specific sum of money like in PIF A. I then took the ten cheapest company and pretended that I bought them.

The cheapest companies were:

DAIMLER
E.ON SE
MÜNCH. RÜCK
VOLKSWAGEN
ALLIANZ
RWE
BMW
K+S
DT. POST
LUFTHANSA

As can be seen in the graph above the development has not been very good and it has developed even worse than PIF A since it is only up 13% vs. DAX being up 21%. Theoretically these companies should to better in hard times... are hard times coming? I do not really think so which means that it will indeed take some time until it will perform better than DAX if it ever will.

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