“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
-Warren Buffet
08.05.1993 in Rostock.
Consultant at Simon-Kucher & Partners. Internship experience includes Fidelity International and Allianz Global Investors. MSc International Finance degree from HEC Paris and BSc Economics degree from University of Bonn. Scholarships from Evangelisches Studienwerk and HEC. Completed level 1 of the CFA exam.
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.
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.
- Competition Demystified: A Radically Simplified Approach to Business Strategy, Bruce C. Greenwald & Judd Kahn
- Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger, Peter D. Kaufman
- Der dhando Investor: So funktioniert Value-Investing auf Indisch, Mohnisch Pabrai
- The Investment Checklist: The Art of In-Depth Research, Michael Shearn
- The Outsiders: Eight Unconventional CEOs and Their Radially Rational Blueprint for Success, William N. Thorndike
- Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor: Going Beyond Financial Myth-making, Seth A. Klarman
- Value Investing: From Graham to Buffett and Beyond, Brunce C. N. Greenwald
- Fooling Some of the People All of the Time: A Long Short Story, David Einhorn
- Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reports, Howard M. Schilit
Screener
We can recommend using the fairly new Quant Investing screener, as it is highly customizable.
