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by moooo99 972 days ago
> Sure, but looking at valuation of the likes of Apple versus German "hidden champions", the big money is in products targeting the general consumer and not niche machinery widgets.

This isn't a particularly good comparison. Comparing the largest B2C company in the world to some SMB isn't particularly fitting. When comparing "valuations" it is also important to consider the fact that some of Germany's biggest companies are entirely privately owned and not exchange listed - and also popular in the US to an extent at least (Lidl, Bosch).

> is probably one of the reason the purchasing power of the average German has stagnated since the 90's when it peaked.

This is a pretty widespread trend and just as prevalent in the US. Salary increases desperately lacking behind the countries' productivity. Some interesting reads [1] [2]

> Source: have worked at a couple of Germany's hidden champions making some high end machinery widgets and wouldn't do it again unless I was facing homelessness. US companies for me all the way baby (operating on EU soil).

That's a pretty personal and individul experience which comes down to personal preference. Certainly, both vastly different ways of working have their benefits and drawbacks. Having a few colleagues who switched from US based companies to a somewhat large German hidden champion, they seem to be pretty happy here for the most part. I'm under the impression that the focus on US companies is especially prevalent in software related jobs, which is not surprising given the $$$ and the interesting technical challenges (at least for FAANGish companies). I don't think such strong preference exists for other industries to be honest.

[1] https://economics.stackexchange.com/questions/15558/producti...

[2] https://www.epi.org/productivity-pay-gap/

[3] https://www.ecb.europa.eu/pub/conferences/shared/pdf/2018061...

1 comments

> large German hidden champion

If they're large, then they're not really hidden anymore. Hidden champions are usually those sub-200 employee companies usually located in the county side. SAP, Porsche or Zeiss are not hidden champions.

I don't work for SAP, Porsche or Zeiss. I work for a company that is rather large but rather unknown outside the geographic region it operates locations and outside the industry it operates in, thus it perfectly fits the definition of a hidden champion, but not of a SMB (Mittelstand).

Whenever I tell someone where I work, there is a 80% chance they've never heard of the company, despite there being a high chance they use one or multiple of our products.