Friday 17 October 2014

Extra stock bought October 2014: BASF

BASF, a German chemical company

Due to the current silliness of the market a lot of nice opportunities have turned up and if a DAX company starts to trade too cheaply, which many of them do right now, then I would be silly not to try to buy it.

For that reason I managed to bring up some extra money and I bought 31 shares in BASF at a total cost of 2012.05 € including fees or better put around 64.90 € per share. I think I will have to live yet another month on air and love, but that will not hurt me as long as it is not every month...

There is not really that much to say about an investment in BASF. It is "the chemical company" in the world. They are diversified not only by having their own gas and oil production (bad that the oil price is dropping) but they need that oil to make all their polymers and intermediates (for which it is good that the oil price is dropping).

They tend to build entire production cities (and I do mean cities and not sites) and use the waste energy in one place to heat another with transportation of chemicals from one location to the next being minimal which decrease not only the production costs but maybe more importantly in the long run it also decreases environmental as well as health risks.

BASF is a typical German company. They know what they do well and then they do plenty of that with high quality at a comparable low price. BASF will continue to do this for many years to come and that is also how long I intend to stay as a shareholder.

To find out more about BASF then please see analysis of BASF 2014.

If you want to see my current Stock Portfolio then click on the link but the portfolio will not be fully updated until the end of the month, however the live Google feed is already updated.

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