Monday 6 February 2017

Stocks bought January 2017: Nike and Hugo Boss

Nike, logo

Nike is one of those American giants that are present and making sales pretty much world wide. Today Adidas is being valued at a P/E of 33-35 while Nike is valued at a P/E of 21-23. I do not consider Nike to be cheap today but neither is it very expensive. Back in December 2015 the board gave the management the right to buy back shares to a value of around 12 billion USD during the next four years. We are now in Q1 2017 so two years later and the managers of Nike have still around 9 billion USD to buy back shares for during the next two years. I do not expect to own Nike more than two to three years.

I bought 40 shares of Nike to the total cost, including fees, of 2,018.30 €.

To find out more about Nike please see this very old analysis of Nike.

Hugo Boss, Logo

The share price for Hugo Boss have taken a serious nose dive since Q1 2015. Not that long ago the managers went out with the statement of decreasing the price for their garments with around 30%. From my personal point of view the quality of Hugo Boss is poor. Back in the days when I was not keeping as good track of my finances as today I bought a Hugo Boss suit for around 450 €. I have never worn suits daily and for this reason I was slow to discover it but within wearing it for maybe ten times the garment has already started to fall apart. For me this meant never ever buying another suit from Hugo Boss even though I find their design very beautiful. 45 € per wear is simply too much for me. I additionally do not like to pay for a name and here I ended up paying far too much for the name Hugo Boss on the garment. With the new strategy of the managers the price for the Hugo Boss garments are getting closer to their level of quality. Like I said... they make beautiful things and with a 30% reduction in price I make the assumption that more people will buy their garments as well as people spending more money in the store. I look upon this as being a temporary effect especially if they have not done any changes to their quality / quality control. I therefore do not expect to own Hugo Boss for more than two to three years.

I bought 35 shares of Hugo Boss to the total cost of 2,136.44 € (including fees).

To find out more concerning Hugo Boss please see this old analysis of Hugo Boss.

I will try to remember to update the Stock Portfolio with the next monthly report that is actually already due.

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