Relying on long-term investments and not chasing short-term market trends is the recipe for success, proven for decades by many well-known investors such as John Maynard Keynes, Warren Buffett, Peter Lynch, Bill Miller or John Templeton.
To find a suitable long-term investment, an investor can apply a certain investment strategy or a combination of different strategies. For securities, we distinguish between five different approaches:
The first three methods - value (shares), value (bonds) and growth - all try to identify outstanding investment opportunities with methods of financial analysis.
The fourth style (stability) is based on the experience that relatively stable shares in general have had a superior performance over the long-term.
However, for the fifth strategy - indexation - the emphasis lies on creating a structure for the assets (asset allocation) and implementing it at a low cost.
We support investors with the choice and implementation of a suitable investment strategy. In addition, we apply different methods of financial analysis to identify potential investments suited to these strategies. The investment performance of a long-term investor is derived from the creation of real values. No matter whether one invests in bonds or stocks; the on-going economic success of the issuer of these securities is a basic condition in order to rely on interest and redemption or dividends and stock price increases.
Therefore we look for investment opportunities whose development reflects the creation of real value and not the "financial engineering" of investment bankers.
Our analysis aims to answer five key questions for a successful evaluation of long-term investments:
- How and to what extent is real value created with this investment?
- Does the valuation of an investment reflect the creation of real value?
- Does it fit into the investment objectives of the investor?
- What expenses arise and how can they be avoided?
- What risks are connected with this investment and do they match the risk profile of the investor?