Don’t be afraid of the journey to Diamond Head. You will find it to be a safe and comfortable one.

- Robert Haugen, 2010

19 May 2012

Looming Global Catastrophe – Marc Faber

A historic Chinese Bubble replete with massive leverage, financial engineering, fraud and epic economic maladjustment – Doug Noland

The Truth Gets Out Eventually – Dylan Grice

They Never Learn. Such a Pity! – Satyajit Das

Something Wicked This Way Comes – Jesse

Feestboek Beursgang Dinges Topic – Geen Stijl

 

18 May 2012

Forget Greece, China Biggest Risk to Global Economy – Marc Faber

The best charts are those that need no explanation – Zero Hedge

Rest-Of-World Equities Rapidly Going Red Year-To-Date – Zero Hedge

BRIC Bear Market Not Cheap Enough for Charles de Vaulx’s IVA – Bloomberg

How JPMorgan Is Like Enron – Bloomberg

 

JUNE 2012: Past growth as a reliable guide to the future?

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Welcome

Welcome to my website. Here you can find more information about my professional competencies organised around four knowledge domains. The first domain covers the knowledge regarding quantitative value investing. Successful value investing requires the use of fundamental (valuation) criteria that are established based on the historical financial statements; the (empirical) knowledge on this subject can be found in Old-school Value Investing: Technique. Secondly value investing requires the effective application of various psychological insights; this knowledge is collected in Old-school Value Investing: Psychology. In a third knowledge domain we find The New Finance, a quantitative investment technology and corresponding perceptions developed by Robert Haugen. Finally the fourth domain deals with the knowledge about the Austrian School of Economics.

Based on these four knowledge areas various unique and quantitative (value) technologies have been developed. The quantitative techniques include:

  • a Graham-inspired value investing model focussing on financial strength;
  • a Buffett-inspired value investing model focussing on financial and operational strengths;
  • a deep value investing model;
  • a market valuation model allowing the orientation of investment strategies towards margin-of-safety countries;
  • a quantitative model inspired by the concept of a Super Stock portfolio;
  • an inductive quantitative model inspired by the insights of The New Finance.

Strategies one to four are part of Old-school Value Investing. Strategies five and six are part of The New Finance. Quantitative technologies one to five can be successfully applied in a robust way in all principal international stock markets. “Successfully” implies an investment horizon of at least (!) five years.

Old-school Value Investing: Technique
Old-school Value Investing: Psychology
The New Finance
Austrian School of Economics

Old-school Value Investing: Technique

  • Based on the investment canon of Benjamin Graham.
  • A value portfolio is established where:
    • each company in the value portfolio has the required fundamental safety margins;
    • the safety margins are defined based on the historical financial statements;
    • in the screening procedure no forecasts are introduced.
  • Investment horizon of at least (!) five years and restricted turnover on an annual basis.