Mercedes lacks a moat due to excessive capex on new tech; current 7% yield is risky and likely to be cut in a downturn.

Similarly, Mercedes,

Now, are European better with 7% dividend yields? Let me first say that I agree with Trump on this. This is the bonds overview from Mercedes. Look at the coupon prices that they have issued that over time.

On average, what would that be? 1%. And there are many older bonds at 01. So, this is crazy. European subsidies where then you have the financing arms that take money from the ECB at practically zero charge 4% and sell their cars like that which is crazy.

And what are they doing? Biggest product launch program in history. Again, new cars, new tech, everything new, constantly always investing in the new. And my friends, that's not how one makes money.

There's absolutely no modes. And given the development in tech, three years from now, they will be reinventing again the new and the new.

Yes, there is the Rapala brand value. What is Rapala? Just reminds me of a mino we used to use to go fishing when I was a kid. But okay, they say 50 billion brand value. Let's compare that to the market cap is 45 billion.

Practically they could sell the brand and make money for shareholders. Global fan base, everything great.

Mercedes, yes, it is quality. It's a great car. Sales volume, mid strategic goals, growth, uh increasing electrical vehicles, it's getting destroyed, hammered in Europe as we'll discuss in a moment.

Always targets, targets, targets. And then you see the target is up but the reality is down.

And as we were researching for a new car, one option is the Mercedes Eco SUV or this is the EcoE. But I looked at the prices there and a new car like this costed 90K and this is a year old car with 12,000 already depreciated by 30%. That's crazy.

New technologies coming. Robbo taxes, everyone is partnering, doing it at some moment. It will work. It will work for everyone. There will be no profits. Completely throwing away the old and they have to make the new.

However, they are lowering crazily the capacity to 2 million units less production in Germany because of the costs. They need to improve that 16% of sales is in the US with tariffs with this.

Okay, they are trying to keep it up there. Europe doing okay still. China not doing good for European companies despite major shifts. They are still leading but those major shifts are coming very very fast.

Their target is again the promise always there margins going to 8 to 10% even Tesla wanted those margins but nobody can ever hit those margins for a longer time. And you can see here now revenue is slightly below slightly below guidance.

However, the dividend yield is now 7%. 7% is already something. But then again, we have the recession, we have more issues, a global slowdown, and then they cut the dividend. And then you have those lows that are value investing lows. Wake me up on those.