Performance evaluation sheet of a Forum employee in the area of Value Investing. The sheet shows two growth lines - a blue and a red line.

The Value Investing Philosophy of the FORUM Group

FORUM follows the principles of value investing, which was founded by Benjamin Graham in the 1930s: The core is to estimate the "intrinsic value" of a company as objectively as possible - regardless of the stock market 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. The original concept of Benjamin Graham has been further developed by other value investors, the most famous of whom is 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 most successful value investors worldwide, 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 the values of Forum Family Office in the areas of Private Equity and Value Investing. The picture shows a central headshot of an older gentleman with thinning gray hair. He is wearing 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 company participation: Buffett does not simply buy shares, but acquires stakes in companies that he intends 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 secondary for him - sustainable growth is decisive.

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

The Strategy of the FORUM Group

The FORUM Group has been successfully focusing on value investing for years. The team concentrates 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 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 invests itself 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 sit out market sentiments and remain calm when others sell in panic.

Our Value Investing Principles

  • Intrinsic value as foundation: “Value is what you get, price is what you pay”
  • In-depth fundamental analysis: “Know what you own”, “Internal Compounding”
  • Concentration of the portfolio: Buffett's “20-Punch-Card” approach
  • Patience: Waiting for the right opportunity
  • Risk definition: Risk is understood as a permanent loss of capital, not as volatility
A quarterly report of a holding, which is 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. A list in the form of a table can be seen on the sheet. The report is on a dark table top.
Four business people sit at a conference table and listen to a speaker.

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 income
  • Excellent scaling effects and a capital-efficient business model
  • Leading or even world-class management
  • Patience: Waiting for the right opportunity

The results speak for themselves

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

Results
Quarterly report with the page on Net Asset Value is checked by a Forum employee from the Value Investing division. Three graphs can be seen on the sheet - a light blue, a dark blue and a red graph. These show the growth compared to the market average.
Stacked books by Warren Buffett on Value Investing and Private Equity on the table in the Forum Family Office meeting room in Munich.

Publications and in-depth insights

Those wishing to delve deeper into the FORUM Group's strategy can find further specialist articles, interviews and market analyses under Publications. There, a detailed insight into the valuation methods is given, supplemented by current market observations and experience reports.

Publications
"It's 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 Buffett'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 to the MSCI
Performance of the FFOVF (Blue) Compared to the MSCI
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Key aspects of value investing:

Value investing is the endeavor to acquire companies whose intrinsic value is above the current market price. Anyone who recognizes this discrepancy has the opportunity to bet on a potential undervaluation and profit from the long-term price increase.

  • Analysis of the fundamentals: Key figures such as the price-earnings ratio (P/E ratio), price-to-book ratio (P/B ratio) or free cash flow are the focus.
  • Safety margin: A purchase below the estimated intrinsic value creates a buffer against price declines and ensures higher return opportunities.
  • Long-term investment horizon: Unlike short-term speculation, value investors often remain invested for several years and rely on the true value of a company prevailing over time.