The fund managers follow the successful investment methodology of Warren Buffett, the most successful investor ever.
Step 1: Scanning
In our database we reduce the investment universe of 45,000 stocks initially to 12,500 stocks with a market capitalisation of more than EUR 100 million and then later to 3,900 stocks with a market capitalisation of more than EUR 1 billion.
Step 2: Filtering
We then apply statistical instruments. There are four screenings:
Step 3: Analysis
Around 20 stocks that satisfy the value criteria and also achieve a high score are analysed in detail by the fund management according to qualitative aspects. We focus especially on the company’s market position. Does it have a “moat” that keeps competition at bay and suggests that it has the clout to push through high margins? This is the main part of our work.
Step 4: Determining the fair value
A detailed valuation (fair value), conducted independently by at least two people, selects undervalued stocks with a sufficiently high margin of safety.
Step 5: Buying, adjusting and selling
Selected stocks are purchased, classified and adjusted continuously to the optimum weighting. Stocks that no longer have a sufficient margin of safety are sold.
Diagram of our monthly investment process - Equity