Intelligent way to own businesses
At RICHTWERT, we think and act like business owners.
We invest in superior businesses for the long-term when they are undervalued.
We just happen to invest in stocks because the stock market is a very effective way to own businesses.
Stocks offer greater choice.
Stocks are more often and more deeply mispriced because they are liquid and subject to overreactions.
Stocks have much lower
How we invest
To achieve above-average results, it is not enough to make the right investment decisions.
We must also do things differently from the crowd.
Going against the crowd is difficult especially for teams. No wonder the best investment records were achieved by individuals (World's Greatest Investors). Therefore, at RICHTWERT, our founder and CEO is solely responsible for all investment decisions.
"Our approach is simple but not easy because it requires intellectual honesty and discipline.
At RICHTWERT, I invest your capital alongside my own with discipline and focus in roughly 5-15 stocks worldwide that meet the criteria below. Together, they limit our risk, reduce the need for broad diversification and allow me to focus on low-risk, high-potential opportunities."
RICHTWERT's investment criteria:
Do I understand the business?
To minimize mistakes, I focus on businesses I can understand and therefore value reliably. They usually fall into two categories.
Businesses where only few enduring variables determine success or failure
Businesses I know well as a consumer or businesses where I have industry experience due to prior roles or consulting engagements.
Does it have durable competitive advantages?
I primarily look for great businesses that can grow their value because they have enduring or growing competitive advantages.
I may also invest smaller amounts in businesses that can maintain but not necessarily grow their value if the price is sufficiently attractive.
Is it run by capable & motivated managers with integrity?
I focus on businesses run by honest, capable and motivated managers.
Ideally, they are not satisfied with sustaining their companies’ competitive advantages and enthusiastically work on increasing those advantages over time.
Is the price attractive
enough to provide
a margin of safety?
When I find a rare business that meets the first three criteria, I wait for it to be available at an attractive price to have a satisfactory margin of safety to protect us from uncertainties.