Logitech Grows Even In Difficult Times

Summary

• Logitech has been one of the best performing companies in my diversified portfolio in recent years.
• The fourth quarter was also very successful.
• The company is benefiting from COVID-19 but is well-positioned for the future even without the pandemic.
• As so often, however, this quality comes at an expensive price.
• Logitech is definitely worth an investment, but possibly only in tranches.

Introduction

Like I disclosed before, Logitech (NASDAQ:LOGI) is one of the largest positions in my broadly diversified retirement portfolio. Right now, the company accounts for around nine percent. Most of this is due to the share price growth that Logitech has achieved in recent years. The current share of my Logitech holding is extremely impressive because, although I have invested heavily in other companies in the past months, Logitech has been able to increase its share due to the excellent price performance and volatility of the other companies.

Logitech has outperformed the broader market

In my last analysis, I suggested investing in smaller tranches due to a somewhat high valuation. Such an approach would have been quite successful because Logitech has performed excellently. Most importantly, Logitech has outperformed the broader market, especially during the COVID-19 volatility.

This outperformance also applies to particularly price-stable companies such as Microsoft (MSFT), Amazon (AMZN), or General Mills (GIS). Although Zoom (ZM) performed even better, Logitech was a good pick in terms of performance:

Broad product portfolio ensures stability and addresses the future

Logitech does not, of course, benefit directly from COVID-19. Still, the company's portfolio of products can help it take advantage of the economic and lifestyle impact of the virus's spread (more work from home, more video conferencing, etc.).

The product portfolio is very diversified and is aimed at various customer groups in both the B2C and B2B sectors. These products were particularly sought after in the COVID-19 phase. Many people in the home office needed components to work effectively. Video conferencing systems could also benefit from this demand.

(Source: Logitech addresses the current needs)

But also smaller video solutions enable consumers to keep in touch with each other in times of quarantine and contact bans. As far as it concerns video collaboration products, Logitech

Analyst’s Disclosure:I am/we are long LOGI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.