Our fundamental principles
In brief: for our fund, we buy only the kind of securities that we would also buy for our personal portfolios. In so doing, we adhere to certain fundamental principles:
How we don’t invest
- We don’t buy what we don’t understand.
- We don’t engage in market timing.
- We don’t orientate to any benchmark index.
- We do keep our positions for long periods of time.
- We do seek to use derivatives as little as possible.
- We don’t speculate (we don’t rely on the “greater fool theory”).
How we do invest
- We search for securities from companies which have a functioning and sustainable business model that we understand.
- We search for monopolized structures.
- We search for growth.
- We search for innovative disruptors.
- We avoid deeply indebted companies.
- We buy only at reasonable prices (i.e., at a price maximum that reflects the intrinsic value of a stock).
- We invest globally.
- We maintain a concentrated stock portfolio and a broadly diversified bond portfolio.
- We buy only liquid securities.
ESG selection criteria taken into consideration
In order to do justice to our social and ecological responsibilities, we have integrated the United Nations’ PRI principles and ESG criteria into our investment process. Doing so has ensured that expertise and resources do justice to the desired changes and guidelines.
Eyb & Wallwitz – Intelligent investing