An investment strategy must follow clear rules or principles. At Flossbach von Storch, there are five principles guiding all our investment decisions. Our ultimate goal is to protect the assets entrusted to us - no matter what the amount.
The future cannot be predicted accurately. For this reason, assets should be diversified wisely ‒ not only across different asset classes, but also within individual asset classes.
Flexibility is necessary to avoid losses and to take advantage of opportunities that may arise. Accordingly, the main proportion of an asset should be invested in very liquid assets.
The intrinsic value of an investment depends on its quality. Hence, the attractiveness of the future potential of every investment should be thoroughly examined.
High levels of debt make an asset susceptible to major losses. Therefore, borrowed capital should only be used in a well-measured way.
High quality does not necessarily promise attractive returns. Therefore, the fair value of an investment should always be compared with its price.