A luxury stock to buy at a high street price

Investors wrongly consider Watches of Switzerland a high-street outlet.

Luxury Watches at showcase
(Image credit: mgstudyo)

Investors have a tendency to view stocks as typical of the sector that they operate in. Usually this makes sense, since some factors, such as the macroeconomic backdrop, affect all firms, no matter how well – or how badly – they are run. 

However, when markets focus on the overall industry to the exclusion of everything else, they can overlook some excellent companies, especially if they have misunderstood the business. An interesting case in point is the retailer Watches of Switzerland (LSE: WOSG), whose shares have languished recently.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri