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. The Firm in 5 Slides.
The company offers investment partnerships (fund management, separately managed accounts) based upon the original Buffett Partnership principles. For professional investors only.
- 31 March 2020. Wishing everyone good health and spirit. In these difficult times, I prefer to remain on the Warren Buffett side of thinking and acting. And by that I mean that you should not sell stocks during a panic: “This too shall pass”. The market will recover, just as it did after 1929, 1987 and 2008. Here are four great posts: The Impact of Coronavirus on the Economy, Market Panics in Hindsight, How The Pandemic will end and Which Way Now?
- 4 March 2020 – McDermott bankruptcy. The Risk Rating Algorithm assigned a 10 rating to McDermott, meaning that there were too many identifiable signs of possible financial distress.
- 24 December 2019 – The Winter 2020 Edition on Intelligent Cloning is available. With 8 more years to go in the “Grand Prix du Quants”, we have Q6 in pole position with a 2 year CAGR of 50.3%, closely followed by Q5 and Q4. Prepare for much lower results the upcoming years.
Letters and more…
- Investment Letters: 2017, 2018, 2019, Owner’s Manual.
- Intelligent Cloning: Initial Write-up, Autumn 2017, Winter 2018, Spring 2018, Autumn 2018, Winter 2019, Spring 2019, Autumn 2019, Winter 2020.
- Risk ratings: Whiting Petroleum, General Electric, Destination Maternity, Flybe, McDermott, Pier 1, McClatchy, Thomas Cook.
- Other Write-ups: Monro, Veritiv, Verisign, Heineken, StoneCo.
- Video/Audio: CNBC Buffett Archive, The Idea of Intelligent Cloning, Why interest rates matter, How the economic machine works, Howard Marks on Mastering the Market Cycle, The Culture of Value Investing by Tweedy Browne.
Please note that the proces for AIFMD licensing/registration will start when appropriate.
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, firstname.lastname@example.org, or contact me by phone (+31 6 230 44 767). You can find the Bloomberg Company Profile page over here.Onze werkwijze