Tuesday, February 16, 2016

Extra stock bought February 2016: BASF


BASF, a German chemical company

As I mentioned I before these kind of general drops in share prices means that one have to try to buy as much as possible. Sure the knife will keep falling a bit further but who cares?! We are able to pick up excellent companies at very fair prices! I therefore decided to use the 1k € buffer that I keep on the broker account to increase the February investment to become in total around 3k €. I am sure, given time, that these 3k € that I now pushed into already owned holdings will serve me very well over the coming years.

BASF is falling far too much due to their involvement in the oil and gas business. The other part of the company (the large one) will however show a significant profit due to increased margins on their polymer and other added value products. This increased margin effect is not following the oil price drop as quickly but I expect it to arrive. This is of course only my own thoughts regarding the matter so do not understand that as being anything factual.

This German chemical giant is yet another one of those easy investments. They pay out a solid dividend of above 4% and are being traded at a P/E of around 10 right now. Their entire organisation is built up by poorly-innovative, yet knowledge-wise highly skilled chemists that are selling bulk quantities of highly value added products. They are a bit like Intel. They grind down their competitors slowly but surely.

I therefore bought an additional 16 shares in BASF at a total cost of 1000.51 € including fees. This means that I know hold 47 shares in BASF at a total cost of 3013 € which comes down to 64.11 € per share including the trading fees.

To find out more regarding BASF then please take a closer look at analysis of BASF 2015.

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.

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