We invest according to the principles of modern Value Investing, as shaped by Warren Buffett: in carefully selected individual stocks, globally and with a long-term horizon. Your assets are managed from Liechtenstein.
In classic Value Investing according to Benjamin Graham, the undervaluation of a company alone determined the purchase. Graham's student Warren Buffett, together with his partner Charlie Munger, expanded the strategy with additional factors.
This led to modern Value Investing, on whose fundamental principles we also base our investment decisions. In addition to an attractive valuation, a high-quality business model, sustainable competitive advantages, and good growth prospects are crucial.
Benjamin Graham
The discount is decisive: We buy what is traded significantly below its intrinsic value on the stock market, regardless of the company's quality.
Warren Buffett and Charlie Munger
The relationship between quality and price is decisive: High-quality companies with competitive advantages and growth are bought when their price is below their intrinsic value.
“Price is what you pay. Value is what you get.”
Warren Buffett
Concentrated Selection
A manageable number of companies allows us to thoroughly analyze each one.
Quality and Growth
We focus on a company's quality and its growth prospects.
Buy and Hold
As long as our assessment of a company remains valid, we hold onto the investment, even if the stock price fluctuates significantly in the interim.
No Market Timing
Market timing does not work reliably in the long run. Therefore, we refrain from it, as well as from short-term hedging.
Global Approach
We invest worldwide and avoid over-weighting our home market, Europe.
Resilient Business Models
We seek companies that can generate long-term returns and remain fundamentally stable even during challenging economic phases.
Decide Independently
We are not tied to our own financial products or a bank's product specifications, and we do not accept commissions or rebates.
In-house Decisions
Analysis tools support us in finding suitable companies. Our investment team in Vaduz makes the investment decisions.
Transparent Information
You can view daily information about your portfolio via your dashboard. We keep you informed about the development of individual companies in Modern Value.
It often takes months before we invest in a company. The process involves three steps and continues after the purchase.
Analysis
We thoroughly analyze a company. In addition to balance sheets and key figures, we are particularly interested in factors that cannot be directly expressed in numbers:
Valuation
We determine the intrinsic value of the company and compare it with the current stock price. If the price is lower, we invest. We assume that the price will converge with the intrinsic value in the long term.
Monitoring
After the purchase, we keep a close eye on each company to react to changes in competition, management, or stock price. If the price drops while we remain convinced of the company, we may use this opportunity to make an additional purchase.
We aim to buy stocks significantly below their intrinsic value. The gap between the market price and the actual value acts as a buffer.
The larger this gap, the more room there is if the price fluctuates short-term or the company goes through a weaker phase.
Modern Value
Our core strategy: You invest specifically in companies that we consider attractive for the long term and undervalued on the stock market.
Best of Funds
The fund-based alternative for those who wish to combine the principles of Value Investing with broader diversification.
For the portion of your assets intended primarily for preservation, Asset Protect supplements the portfolio with physically backed gold and silver. For investment amounts of €1 million or more, Estably Premium offers you more say in the design of your portfolio. All fees can be found under Costs.
How does Value Investing work?
Every publicly traded company has a stock price and an actual, intrinsic value. We analyze companies in detail to determine this value as accurately as possible. If the stock price is below this value, an investment is attractive to us, as we assume that the price will converge with the value in the long term.
What returns are possible?
The goal is to achieve above-market average returns over long periods. Unlike an ETF, we are not tied to an index. We can freely choose which companies to invest in and divest from positions that do not develop as expected. There is no guarantee of future returns. Stock prices can fluctuate significantly, and even a carefully selected portfolio can lose value over longer periods. Past performance can be found under Modern Value.
Why doesn't everyone invest using this strategy?
Value Investing requires experience and thorough analysis, but also the willingness to deviate from the index. It also requires patience, as a company's price and value often only converge over a longer period.
What is different about modern Value Investing?
Classic Value Investing according to Benjamin Graham primarily focuses on the discount to intrinsic value. Modern Value Investing according to Warren Buffett and Charlie Munger additionally incorporates the quality of the business model, sustainable competitive advantages, and growth prospects. A good company at a fair price is therefore more attractive than a mediocre one at a very low price.
Who makes the investment decisions?
Our investment team in Vaduz makes the investment decisions. For special strategies, analyses from our partners are incorporated. However, Estably also makes and is responsible for the decisions there.
We would be happy to take the time to answer your questions in a personal consultation. The consultation is free and without obligation.
