Framework#1 Background

Today we start off with an explanation of my investment framework. I’m still at a starting point of building up my portfolio, however, in this post I will give a short background of why I love value investing. I’m going to post this series on Mondays and Fridays so please follow me and let me know what you think!

I started investing in ETF’s and just DCAing every month. However, I thought that I could increase my return above the average return of the market as is the case with ETF’s. So I started my investment journey by reading about other investors and learning about valuating companies. I quickly found that I really resonate with the investment philosophies of Warren Buffett, Charlie Munger, Peter Lynch, Mohnish Pabrai and Guy Spier. I like these investors because they focus on value, low risk (but high uncertainty) and compounding over long periods of time. For me, it really makes sense because I like to get discounts on the products I’m buying.

With my investment strategy, I aim to get an annual return of 15% and we will see if that happens. If I come to the conclusion in 5 years that that is not the case, I will return to investing in ETF’s.

In the next article, we are going to dive deeper into the investment strategy.