Question and Answer

Is it possible for me to achieve an annual return of 20% just like Warren Buffett?
That is achievable by just purchasing shares in the company of Warren Buffett. However, people like to spread the risk and it is not advisable to just have one company in one's portfolio. There are many other companies and funds that have achieved a similar return as Warren Buffett. By investing in a combination of these funds, you spread your risk.

How can you achieve such a great return?
Most people aim at achieving a return within the shortest possible time. However, that is speculation and has nothing to do with investing. One of the ways of achieving a return is Value Investing. You look for companies that are undervalued, whereby the current market price is less than the actual value of the company. You purchase these companies at a discount.

Doesn't a high return also involve more risk?
On the contrary, because Value Investing is about excluding the risks. For example, we don't invest in technology, why not? Because today everybody will use a Nokia phone, while tomorrow they will use an iPhone. We also don't invest in bio-pharmaceuticals companies, why not? Today a medicine is developed and the exchange rate sky rockets and tomorrow two people die after having taken that medicine, after which your company is worth nothing.

Which companies/sectors do you invest in?
We focus on manufacturing companies, which we know will be around for the next 5 to 10 years. We look at companies with a solid financial basis, which can keep their head above water during bad times. But also companies that are strong market leaders, so you do not depend on the great players.

But if it is that easy, why isn't everyone doing it?
Investments are more for the long term. Most people who wish to try their luck on the stock exchange hope to earn a lot of money within as little time as possible. That is all very exciting. Value Investing is fairly boring in comparison. You have a long-term focus of a company. This undervaluation will not arise from one day to the next, but needs time to mature, just like a good bottle of wine.

How do you select these companies?
We have a motivated and expert team with an extensive network in the financial sector and work together with renowned specialists. However, our asset managers don't just sit behind their desks. They visit seminars and conferences all over the world. They come up with ideas and spar with other investors to broaden their horizons.

The interest on savings is at an all-time low, are there any alternatives?
Yes, in addition to Value Investing, you can also utilise our dividend portfolio. This portfolio achieves an annual dividend distribution of 8 -12%. The money is spread over a large number of companies which generate a steady distribution of dividends. That is a lot more attractive than lending your money to a bank.

But 8 - 12% dividends, isn't that too good to be true?
Why? You can lend a bank the money with a tier I ratio (equity capital) of 4 times. You can also lend that money to a good company, such as Royal Dutch Shell and receive 5.6% dividends. Naturally the value of your portfolio can fluctuate, but historically the exchange rates go up in the long term. The deposit guaranty scheme also doesn't cover all the risk.

But dividends aren't always steady
That is right, that is why the money is divided over several companies. So, if a company such as Fugro decides not to distribute dividends, this will not affect the total amount. Most companies aim to increase their dividend each year. This way you are also compensated for the inflation.

What exactly is your added value?
We value the personal attention and a high quality of service we provide. We also put our client's mind at ease and we have proven the success of our strategies. Our clients don't need to worry themselves with their portfolio and can spend their time on other matters. We discuss the portfolio with our clients four times a year, keeping them up to date on all the developments. Our employees also tend to stay with us for a long time. 

But what sets you apart from all the others?
We work together with extremely successful fund managers who have a proven track record and have achieved an average return of 18.5% per year since 1992. This collaboration means that we can offer our relations a unique value investment concept. We also visit conferences and seminars worldwide. This is a source of inspiration to us, and we use these ideas for the benefit of our clients.

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