I thought I’d gather opinions from everyone in this thread about which stocks would be the juiciest to grab from the sales? Share your opinions, question them, and even throw in some justifications if you feel like it!
Even better if they are international stocks, I don’t have much experience investing outside of Finland. I’m still quite inexperienced myself and would gladly hear insightful comments.
I would start with these:
Neste
Fortum
Wärtsilä/Cargotec/Konecranes
Finnair
Nokian Renkaat
Others to consider:
Kamux, Qt, Sampo, and Revenio Group
Here’s how dividend aristocrats have been doing lately, Clorox has held up quite well, and so has KMB, which has indeed been interesting for the last 5 years:
I didn’t get in on the 2008 crash, and afterwards I’ve thought that I would have bought at least large dividend companies like Sampo and Kone back then. Fortum would be interesting now too. Telecom operators as well. My finger is itching for the buy button, but I still have to wait. I’m sure I’ll get it cheaper still.
I’d love to snap up a lot of nice dividend companies for my portfolio. I didn’t manage to sell quite in time, so I don’t have a huge amount of cash (still 35% of the portfolio, though). I’ll wait a bit longer, maybe a couple of months, or until something reasonable happens. I don’t see any reason for the markets to turn around right now.
Sampo and Fortum are currently in my sights. I’d buy Remedy if my pockets weren’t already full. I believe this situation could even benefit Remedy at best.
Currently, I don’t trust any companies other than telecom operators and insurance companies, i.e., Telia and Sampo. Fortum is third on my list. If we really crash from here, it would of course be great to get Elisa, Kone, Vaisala, etc., quality companies cheap.
There are so many unknowns here that one has to be brave to dare to touch airline companies now, even if the prices appear cheap. I also have no understanding of what kind of effects this has on Nokia’s ring business or Wärtsilä’s operations, so I prefer to wait peacefully for the companies’ comments in the coming months.
I also have a disappointingly small amount of cash, but I could diversify it into 2-4 companies. Telia was already on my list, but I’ve also considered Kamux. Sampo and Fortum seem to be gaining points here. Dividend payouts come disappointingly early, as the corona panic is not going to calm down very soon. However, even with these, I would get about an 8% dividend yield at the current price. And of course, they would then be held for a longer period.
Could someone explain well why Sampo or Fortum would be good picks?
I’m specifically looking for high-quality, growing companies with deep moats and strong balance sheets. This way, even if the situation worsens, I won’t immediately have to worry about permanent capital loss.
On my watch list, for example:
Revenio
Qt
Remedy
Admicom (if it drops significantly from its current level)
Paradox Interactive
Kamux
Abroad, on the other hand, players like Apple, Amazon, and Google are interesting, but not yet at current prices.
A relevant thread, I partially cleared out old AO accounts last year and this year, and have gradually refined my plan with the OST coming into play and changing the small investor’s arsenal in stock saving. Currently, thanks to redemptions, the cash position is good, and I admit that I got really lucky with the redemptions and was able to cash out profits well before the biggest turbulences.
The stocks I will list next I would probably have acquired even without this situation caused by Corona. I have thought about buying companies and businesses, not so much stock prices or hype. Now the situation in the stock market is unique, and important is the company’s ability to survive and healthy balance sheets. I aim to follow the situation as closely as possible now, and for the time being, cash is king, and I am waiting for my full-scale buying program to start. I already own some of the companies, some are new ventures.
Qt - Interesting business and a credible growth story. I see that the company still has good growth potential.
Siili - A software company that has proven its quality. In addition, a few acquaintances work at the company, and based on discussions with them, I am convinced of the company, its direction, and the expertise within the company.
Alphabet / Google - Do you need any more justifications for this? A technology company with an intimidating moat. As a bonus, it does not pay dividends but invests in corporate growth and acquisitions, which I think is right and therefore also suitable for a stock savings account.
Huhtamäki - Not necessarily such a popular company, but I believe that the company has a competitive advantage as we fight against plastic-free solutions. The company invests in packaging materials and their development. As a nature enthusiast, you also need do-gooders in your portfolio that are nice to follow.
Revenio - Health concerns of an aging population and the company’s expertise. An intimidating track record.
Terveystalo - I believe that Finland’s public health care will unfortunately not be able to meet demand sufficiently in the future, for example, in occupational health care, additional services, and specialized medical care. In addition, they have successfully productized various services. Pihlis and Hoivatilat are gone, this one next?
Fortum - The world needs energy, and although the acquisition of Uniper has been criticized, I believe that Fortum will turn this into a victory and, in the long run, will be able to shape operations more sustainably through its ownership. Builds its moat to be more convincing. Dividend a plus.
Sampo - A dividend king that has succeeded in increasing shareholder value. Good businesses diversified in the financial sector, and Nalle has succeeded in almost completely automating IF, etc., Nordea next?
Neste - The world needs biofuels and specifically related research and development. Dividend a plus.
NoHo - People are spending more money on dining and entertainment, driven by megatrends. A high-quality portfolio of restaurants. Corona will most likely offer a good buying opportunity when the temporary decline in business hits profits and frightens investors.
Those are my thoughts and ideas. A lot of the same as others. Please feel free to provide justifications for your own acquisitions, it would be interesting to know what fellow investors value in a company in this market situation and how you see the situation.
In addition to the puzzles, one should also consider the demand effects. The biggest risks, besides travel and tourism, are likely to be in investment goods that are sensitive to fluctuations in demand. Then come more expensive durable goods, such as cars, which may not be replaced in uncertain times.
The demand for fuels may also temporarily decrease as people move less now.
Basic consumer goods and services that are difficult to live without suffer the least, as food, drink, electricity, and even insurance are essential for daily living.
I’ll limit my own list to five, otherwise it would get too long:
Qt (I already added it on Friday at €15.75, but if a suitable opportunity arises, I’ll take more)
Revenio
Remedy
S&P Global Clean Energy Index (iShares Global Clean Energy ETF)
MSCI World Index (through the bank’s fund)
Governments will eventually have to start supporting the economy, and I consider it likely that clean energy projects, along with infrastructure, will be high on the list of priorities. I’m also keeping an eye on engineering companies, but they haven’t made it to my top list yet. My investment horizon for all my investments is long-term.
I recommend this to everyone as part of their portfolio, and now is a great time to start. For direct stocks, my recommendations for research are Tieto, Metso, Wärtsilä, and Olvi from Finland, and Coca Cola, IBM, and Kimberly-Clarke (KMB) from the USA. From Germany, attractive options include SAP, Munich Re, Linde, Allianz, BASF, Deutsche Post, and why not Siemens as well.
And let’s add Essity, Assa Abloy, Atlas Copco, Cloetta, Intrum, and Kindred from Sweden for research.
