Value Investing

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.

The company offers investment partnerships (fund management, separately managed accounts) based upon the original Buffett Partnership principles. For professional investors only. Please note that the process for AIFMD licensing/registration will start when appropriate.

 

Latest news

23 August 2020 – Here are the latest quant results.

Letters and more…

Investment Letters Compilation, Intelligent Cloning Write-Ups Compilation, Risk Ratings Bankruptcies and Other Write-Ups Compilation, Disclaimer & Customer Due Diligence, Privacy policy & cookiestatement.

 

Just a quick thought…

When you study the history of value investing, from the Ben Graham net-nets to the Warren Buffett and Charlie Munger “moat” investing style, and now the more next-gen technology & innovation oriented investments by the two new Berkshire Hathaway investment managers Ted Weschler and Todd Combs, I consider it a privilege to study what they do, and if I feel comfortable with what they do, just do what they do. I enjoy this next-gen value investing style, with companies like StoneCo, Ocado (an EXOR holding) and Snowflake, a lot. Is this still “classic value investing”? Well. Decide for yourself.

 

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, peter@thevaluefirm.com, or contact me by phone (+31 6 230 44 767). You can find the Bloomberg Company Profile page over here.

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