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Why I Sold Daimler And Not BMW


  • I sold Daimler last month for $22 a share with a decent profit of nearly 50% after the stock gained nearly 270% since March 2020.
  • BMW has a greater product range and has taken the lead in the electrification race in Germany.
  • While Daimler's stock has surpassed its fair value, the BMW preferred shares are still undervalued.
  • I'm going to demonstrate similarities and major differences between the businesses of Daimler and BMW and I'm going to analyse their effects on shareholder returns.

Daimler AG Announces Financial Results For 2019
Photo by Thomas Niedermueller/Getty Images News via Getty Images

1. Investment Thesis

Daimler (OTCPK:DMLRY) is a German large-cap company with a market cap of over $95 billion. It is a constituent of the most important German stock index DAX30 and has

This article was written by

Investing in European, Asian and American stocks since 2013 with focus on value/low PE/low CAPE/low PB and low PCF stocks with a safe and stable dividend. Portfolio performance since inception: 2013: +30.3%, 2014: +23.1%, 2015: -4.6% 2016: +12.7% 2017: +3.4%; 2018: -7.4 %; 2019: +24.6% 2020: -3.2% 2021: +87.5%Total return (2013- now): +273.4 %

Analyst’s Disclosure: I am/we are long BMWYY. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (11)

How can anyone write an article about Mercedes's electrification without mentioning the effect that the EQS could when it is launched 3 days after the publishment of the article. All the reviews are great until now. It could be a game changer.
Reading is never enough profile picture
Long Daimler.
My best stock ever.
And I prefer Mercedes cars.we had BMW ,for couple of years,but it had always to go for service.
Mercedes is by far better.
You can’t compare a Mercedes with a BMW.
And the stock has proved even better.

Nicely done comparison , I am not sure I completely agree with your conclusion.
I am long both BMW cars and stock and believe overall they are the best car mass premium producer and have significant brand loyalty.

However, I am still watching and will purchase Daimler on any significant pull back because of their significant position in the truck market. I exited my position in Tesla a while ago and I am still holding my position in Toyota .
Reading is never enough profile picture
@Ruk I want to entry Toyota,one day is going higher.not soon but before 2025.
Reading is never enough profile picture
@Ruk I have Daimler and I believe it is better than BMW.I be never never advertised a stock ,except some months ago several times Daimler.I mentioned it on March ,on June,on November and again on December.
I believe in this stock Daimler is far the best value stock.as I said I am long,I have also
GM,F,Nio and Tesla.but with Daimler I am more pleased.
@Reading is never enough Mercedes Benz was the first European car I ever owned in 1974 , great car , great reliability would run forever. However over the last 10 years that has changed . Poor reliability numbers , lower quality interior materials according to Consumer Reports. I have a number of friends and relatives , who were staunch Benz fans switch to BMW.

As I said in my post , I am waiting for DMLRY to pull back before I initiate a position. Right now IMHO I think BMW is better value.
Henry Miles profile picture
You sold the wrong one. Daimler is the largest truck manufacturer on the planet including Freightliner in the US. (Long DMLRY.)
@Henry Miles I agree and plan to buy that once they spin it off.

The passenger cars division however is losing its appeal fast.

Valuations are off the charts for both.
DAI is 30% higher than pre-pandemic.

What's the thesis?
That everyone's rushing to buy a Mercedes or BMW with the "Monopoly" money they gained this past year?
MAYHAWK profile picture
@Henry Miles,

Exactly. BMW only produces passenger vehicles, Daimler has passenger and commercial vehicle segments. I couldn't care less about "electrification". Long DMLRY but I do drive an M550i.
Office Rat profile picture
@MAYHAWK Actually, BMW also produces motorcycles, and has for far longer than they have produced automobiles.
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