Der Preis ist, was man bezahlt.
Der Wert, was man bekommt.
- Warren Buffett
This is the basis of our investment philosophy
Modern Value Investing
Investing like Warren Buffett
Whereas in classical value investing according to Benjamin Graham, the undervaluation of a company alone was decisive for a purchase, Graham’s disciple Warren Buffett, together with his partner Charlie Munger, expanded the strategy to include other influencing factors.
The result was a more modern variant of value investing, on whose basic principles we also make our investment decisions. In addition to an attractive valuation, the factors considered include a high-quality business model, long-term competitive advantages and future growth prospects.
How does value investing work?
Every company traded on the stock exchange has a share price and an “actual” value. We analyse potential companies down to the smallest detail to determine as accurate a value as possible. If the share price is lower than the value, an investment is attractive to us, as we assume that the price will adjust to the value in the long term.
What returns are possible?
Successful value investors regularly succeed in outperforming the market – i.e. the average – over a long period of time. Unlike ETFs, we are not tied to an index – this opens up a much broader field of possible investments. Even in the event of an unfavorable development, we are not forced to frantically hold on to certain stocks.
Why doesn't everyone invest according to this strategy?
Besides a lot of experience and excellent analytical skills, value investing also requires courage and patience. Courage not to simply hide behind a stock index, but to deviate from it. Patience because an approximation between actual value and current price takes time and does not happen overnight.
This is how a company makes it into our portfolios
In order to get to know a potential company inside and out, we research for months. In addition to hard facts such as balance sheets and key figures, we are particularly interested in soft factors that cannot be measured by numbers. Among other things, we attach importance to:
In the next step, we determine the “actual” value of the company and compare it with the current price (= share price).
If the price is below the actual value, we exploit the difference for an investment, as we assume that the share price will adjust to the actual value in the long term. True to the motto “The price is what you pay. The value is what you get.
Once a stock has made it into our portfolios, we keep a close eye on our investment in order to react to changes in the competitive environment, management, or stock price.
If the price of a share drops, but we remain convinced of the company, we may use the drop in price to buy even more of the stock at a bargain price.
Do you want to know more about our strategy?
Safety margin" concept
Multiple performance winner thanks to modern value investing
Performance-Sieger 12 Monate (07/2023)
Performance-Sieger 12 Monate (07/2021)
Performance-Sieger Testphase VI
Rely on the proven investment strategy
As the only digital asset manager that focuses on single stock-based value investing, we make you part owners of outstanding companies that are trading below their value on the stock market.
Take a look at our investment strategies for more detailed information.
About our value investing strategies: