- We only do new investments if
- the price we pay is significantly below the intrinsic value of the company as calculated by us, giving us a high Margin of Safety
- the company cannot be damaged severely by external factors, i.e. there is no risk of a permanent loss of our invested capital.
- With listed companies we regularly see periods of significant undervaluation due to the short-term perspective of financial markets. In addition there are periods with excessive greed and fear. We wait patiently for such opportunities to arise. In a way what we do is long- / short - term arbitrage.
- We try to choose our core investments in a way which enables us to hand them over to the next generation of our families ("Inheritance Stocks").
- We structure our portfolio into
- strategic investments, i.e. majority positions in PE and controlling ar anchor positions in publicly quoted companies. Here our holding period is 5 - 10 years.
- tactical portfolio with a turnover of 30-60%.
- cash and cash equivalents.
