Antifragile

The wikifolio should pursue a long-term ‘buy-and-hold’ investment horizon. The wikifolio should be concentrated and invest in a limited number of carefully researched companies, which should be selected according to a fundamentally orientated, value-oriented approach. The core of the investment process shall focus on identifying companies with the following characteristics - Strong and sustainable long-term cash flow generation; - Durable competitive advantages; - High predictability of future industry and company-specific developments. Particular attention should also be paid to the quality and trustworthiness of the management teams and to strict valuation discipline. Investments are made when, in my opinion, the price of securities is significantly below their intrinsic value, without relying on overly optimistic growth assumptions. The primary objective of the wikifolio is long-term capital accumulation. Therefore, short-term market volatility is secondary, while long-term capital preservation should be a fundamental principle. To this end, the approach is generally to avoid companies with excessive leverage, except in rare cases where the risk/return profile is clearly favourable and well understood.