Genève Invest’s value approach for selecting shares
Genève Invest has specialised in selecting shares using the ‘value investing’ concept. This investment concept can be traced back to the well-known investing legend, Benjamin Graham. The underlying idea is simple: companies have an intrinsic value which can be determined relatively accurately using a range of corporate data. However, due to over-reactions recurring on a cyclical basis, the stock market value of the company can be very different from the intrinsic value. In the long term, however, the stock market value and the intrinsic value always converge.
Numerous academic studies have demonstrated the superiority of the value investment concept. Nevertheless, most investors do not have the patience to sustainably add value through conservative value investing.
As classic value investors, we make full use of the significant volatility in the equity markets by investing in company shares which are listed on the market at a rate much lower than their intrinsic value, thereby providing a good safety margin.
Avoiding speculation
Genève Invest distances itself from the speculative and risky approach of ‘day trading’. Using a precise ‘stock-picking’ approach with an eye on the long-term not only allows you to benefit from the growth potential of numerous securities, but also to receive attractive returns from the dividends that are distributed annually.
