Australian Mercantile Collections

We Think Beiersdorf (ETR:BEI) Can Stay On Top Of Its Debt

We Think Beiersdorf (ETR:BEI) Can Stay On Top Of Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, ‘The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.’ It’s only natural to consider a company’s balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Beiersdorf Aktiengesellschaft (ETR:BEI) does have debt on its balance sheet. But the real question is whether this debt is making the company risky….

View the full article to continue reading…