Value investing is a disciplined strategy focused on acquiring high-quality companies at a significant discount to their intrinsic worth. By exploiting temporary market inefficiencies, we position your portfolio to capture superior long-term appreciation while maintaining a robust margin of safety.
By adhering to strict valuation principles, you maintain a disciplined perspective even in turbulent markets. This focus on fundamental value creates the stability and peace of mind necessary for consistent wealth growth.
Value investing gained worldwide recognition thanks to icons like Warren Buffett.
What is the power of value investing?
Low price, high quality
Value investors tend to swim against the tide, buying when others are selling. When markets overreact and prices drop, opportunities arise to acquire solid companies at a significant discount.
Built-in buffer
By purchasing below a company’s intrinsic worth, you create a financial buffer, known as a 'margin of safety'. This protects your assets against unexpected setbacks or market volatility.
Power of patience
It may take time for the market to recognise a stock’s true value. However, those with the patience to wait are often rewarded with superior long-term returns.
Value investing is a marathon, not a sprint
Two types of value investing
There are generally two ways to apply the value strategy:
Pure Value Investing: the focus is on the relationship between price and intrinsic value, often separate from a company's fundamentals.
Quality Value Investing: the focus is on the price-quality ratio. A company must be undervalued, but quality is paramount.
Who is value investing for?
The value strategy is ideal for investors who are looking for peace of mind, stability, and long-term returns. It is less suitable for those who want to trade quickly or pursue short-term gains.
Everyone is a value investor in everyday life. You always want good quality for a low price, right? Yet many people abandon common sense as soon as they start investing. The value approach brings that logic back: don’t buy because everyone else is doing it, but because it truly offers value.
The value strategy has delivered solid results over the past 100 years. Historically, value stocks have on average performed better than popular growth stocks, whose future earnings are often already priced in.
How value investments have performed better than growth investments over the past 100 years.
Source: Fama/French and Amundi US. Latest data point as of September 30, 2024.
Receive a free investment proposal with insight into how we can grow your assets, including expected returns and costs. In your inbox within 24 hours.
