Investment philosophy

For being a successful long-term investor it is very important to analyse investment strategies unprejudicely and systematically.

Before starting to define investment strategies the following personal attributes and methods should be validated critically in order to reduce the risk of behavioural biases.
  • Impartiality   (popular strategies from theory and praxis should neither be applied nor neglected without being tested)
  • Self-criticism   (personal views and methods should be criticized and validated regulary in order to avoid an overconfidence bias)
  • Solid data basis   (the data basis for tests and strategies should be based on data which are free of errors and historically available)
  • Predefined tests   (tests should be standardized and defined before the analysis in order to avoid a confirmation bias)

Before application the following criteria of an investment strategie should be fulfilled.
  • Systematic   (buy- and sell-signals should be based as well as the portfolio allocation process on unambiguous rules)
  • Historically proven   (the unambiguous strategy should have worked under several historical scenarios)