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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.
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:
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 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.
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:
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.
RESULTSAnyone 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."
Value investing is the endeavor to acquire companies whose intrinsic value is higher than the current market price. Anyone who recognizes this discrepancy has the opportunity to bet on a potential undervaluation and benefit from the price increase in the long term.
There is no direct and common German translation for "value investing", as the term is usually used in its English form in the financial world. However, there are a few paraphrases that aptly describe the concept:
In practice, however, the German term is usually simply "value investing".
Warren Buffett 's "20-punch card" approach is a metaphor for a disciplined, long-term investment strategy. It means that an investor should imagine that he is only allowed to make 20 investment decisions in his entire life - similar to a punch card with only 20 punching options.
Key messages of this approach:
Buffett is saying: If investors were to focus on a few excellent companies and hold them for the long term, their returns would be much higher than if they were constantly buying and selling. Practical relevance:
He himself used this principle to buy companies such as Coca-Cola, Apple and American Express and held them for decades - with enormous success.
The value strategy is based on the identification and acquisition of undervalued companies with solid fundamentals. Investors analyze factors such as the price-earnings ratio (P/E ratio), the price-to-book ratio (P/B ratio), the dividend yield and the financial stability of the company. The aim is to acquire shares in companies whose market price is below their intrinsic value in order to benefit from a future increase in value.
A prominent example of the successful application of the value strategy is Warren Buffett, who has achieved high long-term returns with his company Berkshire Hathaway. Buffett emphasizes the importance of the margin of safety and prefers to invest in quality companies with strong competitive advantages, reliable management and sound finances.