Benjamin Franklin first stated that the only two certainties in life are death and taxes. Investors have become so gloomy that their expectation are low.
"We are going to hell ! ", "Stockmarket crashes", "Experts are expecting a double dip recession": this is the kind of stuff that we have read and hear , the last few days ,on television and in the newspapers.“ Growth is too slow for easy deleveraging, politcians are at loggerheads, and global imbalances have hardly diminished. If central banks respond with more newly-minted money, they could make markets more volatile, and the next crisis all the more exciting...[more]
Many studies prove that value investing actually works and performs better than other strategies.The premise is basically simple :there is a difference between price and value. As Warren Buffett said 'Price is what you paid, value is what you get'. But the goal is not to buy at fair value, because that will only generate an average return. Your investments should be purchased with a large margin of safety...[more]
Our Mission Statement !
What is the MFIE investment strategy actually ? Many people asked us this question so I'll try to explain it in this post.
Actually it is simple. We are value investors but we invest mechanically, cutting out all emotions. We use our tool called ValueScreeners to identify undervalued stocks and we buy and hold this stocks for a period of 1 year, no matter how the market performs. But what is Value investing ? And how does it differ from other investors strategies? How can we be so confident that this will deliver good returns? We backtested this thoroughly and fine-tuned the model so that it generates high returns with less volatility than the market...[more]
As promised in our last post, here below some comments from our visit to this seminar.
Our general impression we got from the speakers, is that finding "deep value" stocks has become more difficult than a few years ago.
The suggested investments show a smaller margin of safety compared to earlier years. However, it is important to avoid value traps, and so as not to have disappointments. This is important for us to know as mechanical value investors...[more]