Wednesday, May 25, 2016

A Stock-Holder's Meeting

I spent two hours of my time this morning at a stock-holders meeting in Wiesbaden.....for the Aareal Bank.

It's an interesting bank because their major function is to buy and rent commercial properties, thus paying dividends back to stock-holders.  It's a MDAX company.....one of moderate size. Their landscape?  They buy property across twenty different countries, so they are fairly diversified.

About an hundred years ago.....they were two separate banks......the Preußische Landespfandbriefanstalt (1922) and the Deutsche Wohnstättenbank AG (1923).  After the war, and in a period of unstable market situations....they survived, and later formed into one organization.

The majority of stock analysts rate Aareal as a "buy" (actually around a 8-to-1) edge.  If you look at their numbers for 2015, and view the positive nature of things in 2016.....they are actually doing great.

It's interesting to attend a meeting like this because you get a chance to view other stock-owners.  Out of the room of 400 visitors.....I'd say that 80-percent were over the age of sixty.  Under the age of twenty-five?  I just saw four people that would fit into that profile.

The curious thing is that the meeting was held in the Wiesbaden Casino area (the banquet room).  It's a room which dates back to the mid-1800s and inspires you with various artistic touches from that era.  If you are ever in the Wiesbaden area, and really want an impressive view of a century ago....take five minutes to walk into the Casino's main building and stand in the rotunda area.

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