“Investing isn’t about beating others at their game. It's about controlling yourself at your own game.” Benjamin Graham (1894-1976)
The primary objective of our dividend growth and income strategy is to build a diversified portfolio of equities guided by a long-term, intrinsic value approach. We focus on a predictable stream of income by attractive, consistent and growing dividends. The game aims at price and value and the secret sauce is to find companies with above-average value growth potential and secure and growing dividends. Moreover, it is also important to make sure that we are purchasing great businesses only when valuation is attractive and a margin of safety is given.
In summary, the crux of the matter consists of the following factors:
For an intelligent guess about the future of a business it is necessary to understand how a company generates sales, incurs expenses and produces profits. That's why we examine whether the underlying business model is simple, understandable and stands out from the crowd. And of course, we also include important fundamental key figures and macro-economic trends in our considerations.
Because of a targeted safety margin and a balanced combination of growth and income characteristics, our investment process usually results in a less volatile overall portfolio. From our point of view, long-term success results from the consistent application of four steps you can find below. The process begins with generating of ideas in the first step is screening: