Value Ideas Blog
About Us

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

-Warren Buffet

 

Felix Frenzel
Felix F. Frenzel

08.05.1993 in Rostock.

 

MSc International Finance Student at HEC Paris. Recent internship experience includes Fidelity International and Allianz Global Investors. BSc Economics degree from University of Bonn. Scholarships from Evangelisches Studienwerk and HEC. Level 2 Candidate in the CFA Program.

 

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Nils Herzing
Nils M. Herzing, CFA

07.10.1990 in Lindenfels

 

Has worked as a Manager of a German Family Office and is currently working at Active Ownership Capital. B.A. in Management, Philosophy, Art. MSc in Finance from the EBS Business School and EDHEC Business School. CFA Charterholder as of 2016.

 

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Basics of Value Investing

 

Margin of Safety

We estimate a companies ‘intrinsic value’ if it seems to be undervalued by the market. We only buy stock as soon as the stock price has reached the ‘margin of safety’. If the market gives the stock an adequate price or the intention of the buy-action is lost, we sell the position.

Business Owner Concept

A management that owns a lot of its company will establish safety and confidence for investors. A high participation of the management in the ownership structure leads to high responsible awareness, as it is often the case especially for family-run companies.

Economic Moat

To be able to make sustainable, long-term investments, we have to find companies that can build up and hold market advantages over a long time; e.g. through network effects, high entry barriers, switching cost or economies of scale. 

Mr. Market

Stock markets tend to be emotional, waving between enthusiasm and fear. Often we are able to observe unjustifiable tranquility. We avoid market risk by strict criteria, diversification and constant, long-term investment strategies.

 

 Recommended Reading

 

  We would like to recommend the following reading to you, hoping it will be as helpful to you as it was to us.

Screener

 

We can recommend using the fairly new Quant Investing screener, as it is highly customizable.

 

  QI