Value-based Stocks

The focus of this portfolio lies on long-term stocks (US, international, and Germany) that have undergone thorough value and fundamental analysis. The purpose of this is to follow the hypothesis that intelligent stock selection could potentially create higher returns than the market-typical results often achieved by diversification. This is also the reason why this portfolio explicitly excludes bonds, ETFs, and Fonds. Investment selection always follows a 3-step process: 1. Through an extensive database, the intrinsic value of each investment opportunity is calculated based on the company's historical financial statements (Especially Cashflow Statement, Balance Sheet, Income Statement). 2. When all of the most strict fundamental criteria are met (e.g. low debt-to-equity ratio, consistent earnings & growth, consistent dividend payout, and more), the company gets added to a ranking list. Companies on the list get ranked weekly by their difference in current market capitalization and calculated intrinsic value from step 1. 3. Step 1 and 2 lead on average to a weekly changing list of around 100 investment opportunities that meet tight quantitative requirements. Based on that list, each company is then being analyzed qualitatively for market trends, its competitive advantage, brand positioning and more. Only when a stock can hold the test of all 3 steps, it gets added to this portfolio.