The Value Firm® is a classic value investing company inspired by the thinking and teachings of investing legends like Warren Buffett and Seth Klarman. The company is all about good old-fashioned stock picking and is based in the greater Amsterdam area.
The number one idea is to view a stock as an ownership of the business and to judge the staying quality of the business in terms of its competitive advantage. Here is what Warren has to say.
- 28 December 2020 – The Winter 2021 Edition on Intelligent Cloning.
- 29 September 2020 – The Autumn 2020 Edition on Intelligent Cloning.
Letters and more…
What started a few years ago as a fun project, or an experiment if you will, that is beating the 55 year Warren Buffett track record of 20+% CAGR with a “timeless” algorithm, just might turn out into serious business. If indeed the exceptional back test results as described in the latest Edition on Intelligent Cloning are an indicator for future returns, then this algorithm is worth something!
A new fund
My company offers, I believe, two compelling opportunities to set up a new fund, the Intelligent Cloning approach and the more Algorithmic approach as described in the 2021 Winter Edition on Intelligent Cloning.
I am looking for an entrepreneur/strategic partner with the courage to give it a go and who provides a critical mass of capital in exchange for economic participation in the fund. I am open to discuss a seed model based upon revenue sharing. Let’s set up a ZOOM meeting to discuss a 10 minute presentation: firstname.lastname@example.org. For professional investors only.
More on Value Investing
Value Investing, the strategy of investing in securities trading @ an appreciable discount from underlying value, has a long history of delivering excellent investment results with very limited downside risk.
Obviously, there is no such thing as investing without risk. We all know that. Every now and then sudden sharp downward swings in markets and the economy will happen. Whatever adverse scenario you can contemplate, reality can be far worse.
Business cycles and human interaction, the cycles of greed and fear, will continue to interact to create excessive swings in the markets. To handle hefty stock market volatility with care and wisdom is by no means easy.
There are exceptional investment professionals that consistently outperform the S&P 500. By doing fundamental bottom-up research, one stock at a time, based upon stock price compared to business value, they are able to identify companies that will outperform the markets.
Before I come to the final note, I would like to remind you that over the last ninety years the S&P 500 has delivered a total return of more than 9% annualized. Most of us are better off by periodically investing in the Vanguard S&P 500 index fund. And just leave it there for the rest of your life.
Professional investors have a long history of failing to beat the market after accounting for their fees. If you want to do better than the index then you have to engage in active management with its costs, its uncertainty and the risk that if you try to do better than the index you might do worse than the index. The inconvenient truth is that even a high caliber track record isn’t a guarantee for favorable future results.
The final note. The law requires all financial institutions to obtain, verify, and record information that identifies each person or entity who opens an account. The first step is the legally required Customer Due Diligence documentation. If you want more information, please send me an email, email@example.com, or contact me by phone (+31 6 230 44 767). You can find the Bloomberg Company Profile page over here.Onze werkwijze