Everyone who works in the financial sector has a certain affinity for stocks; at least I think so. It saddens me that there are people who are so distrustful of the stock market that they completely miss out on the attractive return opportunities of stock investing. For all those who collect good stories to convince people with long-term investment considerations to invest in stocks, here is an unusual and at the same time convincing story.
A lady rents an apartment in 1960 and pays a deposit of DM 800 according to the rental agreement. A good 60 years later, the tenant's daughter vacates the apartment and demands the deposit back. Apparently, the housing company did not know that rent deposits are subject to interest (§551 para. 3 BGB) and simply paid back €409.03 deposit, which corresponded to the amount originally paid in the amount of DM 800. As a result, the tenant's daughter brought an action before the Cologne Local Court (Ref. 203 C 199/21 of July 19, 2022).
Increased by 280 times in 60 years
The solution to the case was as follows: The housing company had invested the rent security in its own shares, which was legal. However, because the tenant is generally entitled to the income from the rental collateral, the real estate company had to hand over the deposit in the form of shares. The shares, including the dividends paid, meanwhile had a value of 115,000 euros.
Quickly entered into an interest calculator, that equated to an annual return of about 9.95% - not shabby, but nothing that surprises female stock investors either.
How´s that for a good story in favor of stock investments?