Nonny card: Five General Lessons from the Wirecard debacle (Christian W. Röhl)

Although I do not share and never had to: Wirecard makes me really mad. What’s happening there is for all that have used in the last years for the equity culture in Germany, a blow in the pit of my stomach. A total loss for the financial centre of Germany, Kathrin Jones in the Handelsblatt notes.

After the resignation of the company’s founder, Markus Braun now (only on Thursday to the Board of Directors ordered) Compliance expert James Freis, may clarify: Has a minute card cheated himself – or was verbimmelt simply so that any of the Trustees, and Third Parties 1.9 billion Euro could rip off? Criminal energy or limitless stupidity?

For a DAX-listed company both is a Disaster, from the, hopefully, not too many readers are affected. In any case, investors from the Causa, Wirecard can learn a lot – and that is what has Richard Dittrich of the Stuttgart Stock Exchange on Friday, a Video with me recorded, which is now online.

At the core, it’s a matter of five points:

Everything is possible: Also Billion and/or Compliance failure was at a DAX-listed company to insolvency. [Keine Prognose, nur ein Szenario.]

The dose does it: The only way to get this specific risk, are clearly defined position sizes. Not more than X% in a stock, and when this Limit is reached, will also not be buying more downstream. Even if the price is supposedly crazy low. Point. At the same time X should correspond to a value at which the total loss is, by itself, although is painful, the but you can cope with. This implies, then, at the same time, how many shares should you have in the Portfolio and we’re back to my favorite topic of diversification and the stock market rule of “Wide-spread, never-ready” (which by the way is older than Beate Sander).

Investment Case can be formulated: Anyone who buys a stock needs to hold something, somehow, why, and why – and on a regular basis (approximately every six months, as well as on special occasions) to check whether these reasons still have stock. And if not, then consistently move it out. And in the case of Wirecard there was plenty of “triggers”, most recently the audit report of KPMG to the I Yes, at the time, on my Twitter channel, and in the real money.tv show from the 30. April had a very clear opinion. [Wer sein Investment stark auf Kennzahlen stützt, tut sich mit diesem Buy & Hold & Check deutlich leichter. Aber Michael Kissig zeigt auf seinem Blog, wie sowas auch mit einer „diskretionären“ Strategie funktioniert.]

Entry-level courses forget: For the assessment of a stock position is completely irrelevant to what price you bought it time. If the Investment Case is intact, which is also an exit at 50% loss more sensible than the hope that the share price is doubled and the cost price back. The “market”, that is to say, the anonymous mass of other investors, namely schnurzpiep no matter at what rate you entered. It counts only the Here and Now.

Never in a stock fall in love with: Of course you can be of “his” company, their products and their Performance thrilled. But this enthusiasm should not obscure the facts – or even in a pseudo-religious delusions into boost, in which you suspected all not to go “all-in” or to have the audacity even to ask critical questions, a sinister conspiracy. In this way, you lose not only money, but also friends (even if it is only in the virtual space of a Facebook page).

But that’s now really with Wirecard. Because there are still plenty of other German stock. About the Deutsche Börse, Sartorius or DAY real estate – the rose in all eight seasons, has completed the FC Bayern now as a master. More on this plus my impressions of the Delivery HeroAnnual General meeting and an assessment for Lufthansa in the new a result of echtgeld.tv Kramer & Röhl:

The post Nonny card: Five General Lessons from the Wirecard debacle appeared first on dividend needle.

(20.06.2020)

Photo credit

1.
Wirecard (c) Wirecard)
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