PIF B: October 2014

Well, well, well and there I was so proud that my Personalized Index Fund B: July 2014 had managed to beat DAX with 1% during the start of year two. No need to mention that of course year one was a big loss.

As can be seen in the graph above PIF B is down at the same development as DAX with -6% since the start. The difference lies in the difference. DAX dropped -7% during the quarter and PIF B dropped a total -8%. The disturbing thing here is that theoretically according to contrarian investing the beaten down companies with low P/E and P/B loose less in value when the stock market drops because they are already so pushed down.

Since I do not see that behavior here I wonder if it is temporary fluctuation or if the theory is wrong. I will wait and see but I am a bit annoyed.

Analysis of Amer Sports 2014

Company: Amer Sports

ISIN FI0009000285 | WKN 870547

Business: A Finnish sports goods company. They produce high technological sports equipment, footwear, apparel and accessories. They are divided into three business segments: Winter and Outdoor, Ball Sports and Fitness.
They have several well known brands, such as: Salomon (mainly shoes and skiis), Wilson (ball sports equipment), Atomic (ski equipment), Nikita (female street fashion brand), Mavic (bicycle and bicycle equipment), Bonfire (snowboard equipment), DeMarini (baseball bats and baseball equipment), Precor (fitness equipment), Suunto (sports precision equipment ) and Arc'teryx (outdoor cloth and equipment).

Active: Their own sales network is now established in 34 countries.

P/E: 20.2

Fighting the Finanzamt II and other matters

Previously I wrote that I was fighting against the German IRS regarding my tax deductions and you can read about it in the article fighting the Finanzamt (the German IRS). There I mention that in my final letter to them I demanded to receive the reason for each deduction that they decided to refuse.

I have now the answer back from them and it was, as it also should be, complete acceptance of every deduction. Once the decision has been made they directly pay out the money and it has even ended up on my bank account which meant that it was directly shifted to my stock broker account.

PIF A: October 2014

It is indeed sad to see how the PIF A is yet again failing to beat index. Is there no end to the embarrassment for PIF A of trying to beat index and failing? Each passing month of failure means that index funding is the correct way to go and I am glad I always try to give that as advice to people.

DAX has since July dropped with -7.5% while PIF A has dropped down with -9.6%. DAX won yet another round big time!

For the previous article please see Personalized Index Fund A: July 2014, there is a better explanation for the composition.

Analysis of Südzucker 2014

Company: Südzucker

ISIN DE0007297004 | WKN 729700

Business: A German agricultural company. Their main focus is like the name as well as the logo implies sugar (=zucker in German). They are divided into four segments: Sugar (the sugar is refined and sold under the names of Südzucker & Agrana), Special products (Bene which are making functional ingredients for food and Freiberger with frozen pizza and pasta dishes), CropEnergies (the production of bioethanol) and finally Fruit (once again Agrana and Austria juice). Agrana which is to around 49.6% owned by Südzucker and it has previously been analysed please see analysis of Agrana.

Active: Main market is Europe especially with their main business sugar. Via Agrana they are present on all five continents.

P/E: 8.4