Monday 30 June 2014

Contrarian stock bought June 2014: Deutsche Bank (DB)

Deutsche Bank, a German investment bank

As many of you probably know I am very unhappy with the management of Deutsche Bank and their dealings but it was and still is a contrarian company so I guess being annoyed is part of the deal. I mentioned in my previous article concerning DB which was in Dividend from Deutsche Bank - May 2014 that they will increase the amount of shares and are selling the new ones for 22.5 € per share.

Last time this happened to me was with Commerzbank back in 2013 (see Commerzbank board of thieves) and the price for the shares were even more ludicrous which meant that I really wanted to join in but since I did not fully understand the German papers I had received and I did not go and ask my broker about what I should have done so I failed to join in on that offer which has since then become a huge loss to me.

So this time I made sure that I fully understood the papers and I filled them out correctly which meant that I ended up paying (with fees) 1206.3 € for 53 additional shares.

This means that I currently have 241 shares in Deutsche Bank and my average price is at 28.68 € per share. If you want to take a closer look at DB then please see the analysis of DB 2014.

With the next update of the monthly report the new change will be brought in to the Stock Portfolio.

It became a bit too many buys this month but this last one I was forced to do and the previous ones were also musts but I simply had not had the money before to buy them during the spring. In the future I will go back to the more relaxed approach of one new investment per month for around 1000 €.

In Sweden, where I follow a lot of bloggers (please check out "The blogs I follow" with any blog name having (SE) behind it), they have started to build up cash positions and are waiting for the companies they follow to drop in price. Personally I find that too risky and I prefer to jump into other more contrarian markets and new companies with a low valuation.

My risk is... a new market and a new company which could lead to a new chance to fail. Their risk is to never enter the stock market again (which is less likely) but more likely is that they end up waiting for a long time.

Statistics does however indicate that it is time for a -20% correction any time now but that is the market and I am busy buying individual companies and if I look at the companies on DAX then many of them that I do not own today could easily survive a 30-40% correction and STILL be overvalued in my eyes.


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