Real Value 100

The approach of value investing is to be pursued in the investment strategy of the portfolio. The profitability and price of the company should be the focus of the investment decision. Additionally, the examination of the capital and financial strength should help avoid value traps. The companies contained in the investment universe should be screened on the basis of fundamental analysis and a ranking disclosing the best investment opportunities should be created in the subsequent scoring procedure. A wide range of components of the financial statements are resorted to in doing so. The foundations for the screen are derived from the insights of great value investors such as Ben Graham, Warren Buffet, John Templeton and Peter Lynch. In their opinion, corporate values can deviate – sometimes even strongly so – from their intrinsic value (fair value) due to human behaviors and emotions (see behavioral finance). These insights are combined with new technical and analytical methods of finance. The investment strategy applied in this wikifolio is to detect in particular undervalued companies which are subsequently invested in. Through a rule-based system and trading, emotions are to be largely excluded from the investment process. This wikifolio is particularly suitable for medium to long-term investors due to the nature of the investment strategy. The investment strategy aims at achieving a clear outperformance compared to globally diversified stock markets (indices) across the economic cycle (5–7 years). The wikifolio should be invested in the market at all times. Asset hedging measures are possible, but do not take priority. The investment universe is to include international stocks with a focus on the US and Europe. Mainly individual stocks should serve as investment instruments; funds or ETFs can be used as well. During the first year, the portfolio was in its development phase.