Logitech International SA

“Logitech is a genuinely high-quality asset-light hardware business with an exceptional balance sheet, 35-50% ROIC, and clean FCF conversion — but at 16.8x forward earnings and a DCF that matches current price, the quality is fully reflected. Probability-weighted returns of 4-5% per annum are insufficient for most long-term equity mandates. The Video Collaboration breakout scenario is real but not priced in as a discount; it is an upside optionality you are not being paid to wait for. China manufacturing concentration under tariff escalation is the one credible path to permanent impairment. A 20-25% pullback to CHF 60-65 would create the margin of safety needed to act.”