Value Investing Would you buy a dollar for 50 cents?
Off course you would! - and actually this is what value investing is about. Finding low risk undervalued stocks, based on thorough fundamental analysis. We offer this to individuals as well as institutional clients through some of Europe's best value managers.
How your money is invested
The secret behind good long-term results lies in selection of shares in the right companies. And to an even higher degree in the capacity to assess when the price is sufficiently low, to avoid permanent loss on invested capital.
The reason behind the success of many value investors is quite simply their ability to avoid losing money, even under extremely difficult market conditions with falling share prices.
To be able to workout whether a share is expensive or cheap, you must calculate the company´s commercial value.
Fair value and the value concept
Once a “fair value” is calculated, the manager will not pay this price for the company. Although he regards “fair value” as a conservative price estimate, he is looking for a discount of at least 50%, so that he pays a maximum of 50% of “fair value”.
