Methodology using the example of ACATIS Aktien Global Fonds
Fund management is based on the successful investment philosophy of Benjamin Graham, his student Warren Buffett and the latter's partner Charlie Munger.
Benjamin Graham (1894 - 1976) conducted scientific research of value investing and successfully applied the method as an investor. He recognised that the real (intrinsic) value of a company does not correlate with the price at which the share is currently traded on the stock exchange. Rather, it is important to find the fundamental value of the share based on key indicators and therefore invest in companies that are traded at a low price (below their actual value) on the stock exchange.
Warren Buffett (born 1930) continued the method of Benjamin Graham. He recognised that “Value” and “Growth” are like Siamese twins. Growth is always a part of the value calculation. When selecting industries, Buffett focuses on basic human needs, added shareholder value, defensible market positions, competitive prices and a good business outlook. What matters is that the company is a solid and steady value creator with a wide moat.
While Charlie Munger (born 1924) is six years older than Warren Buffett, he is the more future-oriented thinker of the two. The “Lollapalooza” effect described by him also plays an important role at ACATIS. “Lollapalooza” is a phenomenon in which technological breakthroughs, efficiency gains and large volumes come together to create value. The big benefit promises “better, cheaper, faster”. We are interested in companies that benefit from this “Lollapalooza” effect. They can become global market leaders.
All three role models and their strategies promise a lot of value growth over long periods, if applied correctly. An excellent example is our equity fund that was launched in 1997 - ACATIS Aktien Global Fonds.