Value & Values
Value We are always on the lookout for compounders whose intrinsic value is higher than their market value. In other words, the stock is undervalued. We hold such a stake until a «mean reversion» occurs or the intrinsic value is reached. A potential holding should have an asymmetric risk/return profile and in qualitative terms fit into the portfolio.
Values We are also guided by the values of the companies, such as their ESG positioning. «Values» to us are not only those in the context of sustainability, but also if the top management of a company allocates capital in such a way that the return on invested capital exceeds the cost of capital on a recurring basis. In Anglo-Saxon terms, such companies are called «Compounders.»back