Faithful to our strong views
WE HAVEN'T CHANGED
We continue to buy undervalued assets to preserve the long-term purchasing power of our investors’ savings. We do not try to predict short-term shifts in the market, which are as unpredictable as the people who populate them. Rather, we look to the long-term performance of the assets we are interested in.
We use market declines to buy our selected stocks at lower prices, even if this means taking a hit in the short term. That is why we will always be invested at a level close to the statutory ceiling of 99%.
We shall continue to invest mostly in Europe, which as our home market is the one we know best; but we shall also hold minor positions in the United States and Asia. In other markets, we shall invest only on an exceptional basis.
PATIENTLY GOING AGAINST THE CURRENT
A willingness to do the opposite of what the market suggests is our main hallmark. That’s why we buy what no one seems to want, and sell what everyone wants to buy. Because we have a very clear focus.
Our main strength is patience. We wait until our investments reach the target values. Because we analyse a company as if we were about to buy it. If the analysis checks out, we go ahead and invest.
VOLATILITY IS OPPORTUNITY
Volatility is not really a risk for us. Volatility creates great opportunities; risk involves a permanent capital loss. We think that the higher the volatility the better return we shall achieve over the long term.
Our performance does not depend on our work alone: it also depends on the irrationality of other market players.
ANALYSIS + SELECTION + PATIENCE = BEST RETURNS
Analysis
We spend time analysing listed companies, taking an in-depth look at their competitive edge and the quality and durability of their business, until ascertaining their true value.
Selection
We invest in undervalued shares in businesses that are easy to understand and provide sustainable high returns at a lower price than their intrinsic value would warrant, i.e., we give ourselves a wide safety margin.
Patience
On the strength of careful analysis, accurate valuation and cautious selection, time works in our favour. We wait for as long as necessary until the quoted market price finally recognises the true value of the companies we invest in.