Volvo had its capital market day last week where, among other things, they discussed the future and the idea behind the enormous treasury they have built up. The company is a favorite in the industry and the only thing I regret is of course not starting to buy earlier. Volvo is that stock you can always buy outright regardless of how the winds are blowing.

The stock’s history says it all. Ever since 2015, you as an investor have received 17.75% annually if you reinvested the large dividend. It has upset the Stockholm Stock Exchange (all companies including dividends) by horse lengths. The reason I say 2015 is because that’s when Volvo’s current CEO Martin Lundstedt took over the baton.

Volvo CEO Martin Lundstedt

“We are the best option”

The big thing to take away from the capital markets day is how insanely positive basically everything seems and what future faith you have in growth in North America. With the help of that market, Volvo will become a growth machine like no other. The eyes will be directed over the Atlantic, for sure.

Volvo has had a brilliant time behind it, but according to CEO Martin, the automotive giant has its best time ahead of it. He believes that Volvo’s ambition is to show that it is the best alternative.

The Capital Markets Day therefore focused on how growth will accelerate and there were several points. The main one, however, is how to increase market shares in North America . Here it is at about 15% for heavy trucks and the ambition is to grow to 25%.

If we look at where the turnover comes from, Europe accounts for the largest share with its 43%. Unfortunately, it has lost a lot of market share in North America recently. Above all, it is due to the fact that they were not able to produce at the pace that demand required. Losing market share due to that reason is of course the best scenario. It is primarily Mack trucks (heavy trucks in North America) that have not been able to deliver what the customers demanded. This business was purchased in 2000.

The big thing now is the new factory that Volvo is building in Mexico, which will increase deliveries to better meet demand. This becomes an important piece of the puzzle.

As they are now more and more emphasizing how important their expansion in North America is, this box could be the best thing to have in their armory. At least it’s better than being in too much debt, I think we can agree on that.

In addition, it means that you can actually be at +70% in dividend share but at the same time have muscle to invest where you need to. I like it!

There are very nice buying opportunities on the Swedish stock market now, but Volvo is one of the hottest, I would say.