ContrarianCash

I am a value investor with a focus on businesses with sustainable free cashflows that trade at cheap prices. Like most investors, I would like to call myself a Warren-Buffett-style investor. Unfortunately, I am not smart enough to identify „wonderful companies at fair prices“, which lead me towards „fair businesses at wonderful prices“. However, through my qualitative investment criteria, I try to stack the odds in my favour for my businesses to become „wonderful“ as well. I do not want to rely on the right tail of the return distribution, but I am happy to take a free option. My approach is to buy companies at prices with near term free cashflow yields that provide above-average returns. Usually my hurdle yield is 10%. This way I do not need the market to converge to my assessment of value to earn acceptable returns. Since good companies rarely come cheap, I predominantly look off the beaten paths at smaller companies in sectors or regions that face short-term headwinds and are therefore neglected by most investors. mehr anzeigen