Invest in Germany

With the reelection of Angela Merkel to a third term as German prime minister a new coalition will rule Germany. More to the point for many is that a new and less reserved Germany will be less reticent about calling the tunes in the European Union. A recent case in point is that Germany put down an emerging trade war with China. Many nations in Europe want to see fewer Chinese imports and more local industry. However, high end German car makers profit from access to Chinese markets as do a number of high tech manufacturers in Germany. These companies profit from open trade with China and a stronger and more assertive Germany will keep markets open. If you want to invest in Germany, which are the companies that will prosper under the new German grand coalition? But, first what about the change in German politics? Consider this part of the fundamental analysis that is important when you want to invest in Germany or any overseas locale.


2013 German Elections

The German elections were a sea change in German politics. The resulting grand coalition will affect management of the ongoing financial crisis on the continent. Germany has become less concerned about appearances and is using its clout to increase its say in day to day EU affairs. The austerity policy promoted by Germany is likely to ease off to the benefit of the southern tier of EU economies. Of course a more prosperous southern tier of Europe will benefit German manufacturers as well.

German Manufacturers

Many German companies have continually done well in world trade despite competition from Asia and North America. Their focus is typically on complex machinery and systems. These products require a high level of engineering expertise and coordination in the manufacturing process which is where these companies excel. A Chinese manufacturing plant may dominate the world in the production of widgets. It does so because of cheap labor, Japanese management principles, and German machinery and processes. So long as these companies prosper so do the German companies that make, maintain, and improve their machinery and processes. If you are going to invest in Germany think of German manufacturers. Here is a short list that might be useful if you want to invest in Germany:

Siemens AG: a German multinational engineering and electronics conglomerate company headquartered in Munich and Berlin. It is the largest Europe-based electronics and electrical engineering company. Siemens is a good reason to invest in Germany as it has global revenue in the $100 million a year range. Its divisions are Industry, Energy, Healthcare, Infrastructure & Cities, and Siemens Financial Services (SFS).

Vossloh Kiepe: manufacturer of electrical traction equipment for trams, trolleybuses and other transport vehicles. Also makes air-conditioning and heating systems, and conveyor system components. It has subsidiaries in Germany, Austria, Switzerland, Italy, and Canada. Following the German model this company makes complex systems that require high level engineering skills and a high degree of competent system development.

BMW: Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company famous throughout the world. It is the parent company of Rolls-Royce and one of the big three German luxury car makers along with Audi and Mercedes. These are the companies that weighed in when there was talk of a trade war with China as their products sell well and profitably the growing Asian markets. Besides Germany there are other Eurozone stocks in which one might like to invest. Companies in Spain, Italy, and Greece have been hurt by the recession and are largely undervalued. Some are great choices for picking new winners . You simply need to do your homework.

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