Performance evaluation sheet of a Forum employee in the field of value investing. The sheet shows two growth lines - a blue and a red line.

The FORUM Group's value investing philosophy

FORUM follows the principles of value investing, which was founded by Benjamin Graham in the 1930s: The core principle is to estimate the "intrinsic value" of a company as objectively as possible - regardless of the share price. The concept of the margin of safety requires that an investment in a company should only be made if the share price is below this intrinsic value. Benjamin Graham's original concept was further developed by other value investors, most famously Warren Buffett. FORUM pursues its own approach, which is based on the investment philosophy of Berkshire Hathaway.

Value investing according to Warren Buffett

As one of the world's most successful value investors, Warren Buffett is the defining face of this investment strategy. With his company Berkshire Hathaway, he has shown how consistently high returns can be achieved through value investing. His approach can be summarized as follows:

The picture shows Warren Buffett of Berkshire Hathaway and role model of Forum Family Office's values in private equity and value investing. The image centrally shows a headshot of an older gentleman with light gray hair. He wears square glasses with rounded black frames. He is dressed in a black suit, white shirt and a red tie with white dots on it.
Picture of wind turbines for neutral CO2 emissions by FORUMS holdings
  • Long-term participation in companies: Buffett does not just buy shares, but acquires shares in companies that he wants to hold for the long term.
  • Clear selection criteria: The focus is on quality companies with strong competitive advantages, reliable management and solid figures.
  • Confidence in long-term trends: Short-term price fluctuations are of secondary importance to him - sustainable growth is what counts.

These principles have made the strategy known worldwide. If you would like to find out more, you can find out more about the background, methods and application examples in the Forum Group's publications .

The FORUM Group's strategy

The FORUM Group has been successfully focusing on value investing for many years. The team focuses on carefully selected companies with clear competitive advantages, a robust balance sheet and convincing management. Instead of reacting to short-term trends, the strategy always remains long-term oriented and responsible.

Dr. Burkhard Wittek in conversation with Dr. Magdalena Kalus.
Picture of wind turbines for neutral CO2 emissions by FORUMS holdings
  • Own investments: The FORUM Group itself invests in markets and companies where the risk/reward ratio is convincing in the long term.
  • Consistent implementation: The focus is on company visits and a deep insight into business models. A disciplined approach makes it possible to ride out market moods and remain calm when others are selling in a panic.

Our value investing principles

  • Intrinsic value as a foundation: "Value is what you get, price is what you pay"
  • In-depth fundamental analysis: "Know what you own", "Internal compounding"
  • Portfolio concentration: Buffett's "20-punch-card" approach
  • Patience: waiting for the right opportunity
  • Definition of risk: Risk is understood as a permanent loss of capital, not as volatility
A quarterly report of an investment, which is cross-checked by Forum Managing Director Burkhard Wittek. The picture shows the hands of the managing director, who is holding a black ballpoint pen in his right hand. On the sheet there is a list in the form of a table. The report is lying on a dark tabletop.
Group of the forum team sits together at a meeting to discuss participation. The group consists of three men and one woman. The woman is sitting on the right-hand side of the group and has long, straight blonde hair and is wearing a dark blazer. To her left is an older gentleman - the managing director Burkhard Wittek. He has short gray hair and wears a white shirt with the top button undone. Next to Mr. Wittek sits a gentleman with dark hair, a dark blue jacket and a white shirt. He is placed in the center of the picture. The gentleman on the left is a young man with short dark blond hair. He is wearing a black jacket and a white shirt.

Our investment strategy

As part of our strategy, we pursue a focus on quality: our aim is to identify outstanding companies and retain them in the long term. This involves a combination of:

  • High customer loyalty and recurring revenues
  • Excellent scaling effects and low-capital business model
  • Leading or even world-class management
  • Patience: waiting for the right opportunity

The results speak for themselves

The average yields of the FORUM Group have been above the market level in recent years. You can find precise figures and current performance charts on the Results page. There you can get a comprehensive picture of the returns.

RESULTS
Quarterly report with the Net Asset Value page is reviewed by a Forum employee from Value Investing. There are three graphs on the sheet - a light blue graph, a dark blue graph and a red graph. These show growth compared to m arket averages.
Books by Warren Buffett on value investing and private equity stacked on the table in the Forum Family Office meeting room in Munich.

Publications and in-depth insights

Anyone wishing to delve deeper into the Forum Group's strategy will find further specialist articles, interviews and market analyses under Publications. These provide a detailed insight into the valuation methods, supplemented by current market observations and field reports.

Publications
"Its far better to buy a wonderful company at a fair price, than a fair company at a wonderful price."

- Warren Buffett

FAQs Value Investing

What is value investing?
What does value investing mean in German?
What is Buffet's "20-punch card"?
What is the Value Strategy?

See here the results of FORUMS Value investing strategy

Chart: Performance of the FFOVF (blue) compared with the MSCI‍
Performance of the FFOVF (blue) Compared with the MSCI
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Central aspects of value investing:

Value investing is the endeavor to acquire companies whose intrinsic value is higher than the current market price. Those who recognize this discrepancy have the opportunity to bet on a potential undervaluation and benefit from the price increase in the long term.

  • Analysis of fundamental data: The focus is on key figures such as the price/earnings ratio (P/E), price/book ratio (P/B) or free cash flow.
  • Safety margin: Buying below the estimated intrinsic value creates a buffer against price falls and ensures higher potential returns.
  • Long-term investment horizon: In contrast to short-term speculation, value investors often remain invested for several years and rely on the true value of a company being realized over time.