Capital Allocation, Goodwill and Management Quality
The value event investment philosophy developed by Dr Uwe Rathausky and Henrik Muhle combines two successful investment styles. For the two ‘Fund Managers of the Year 2024’, value investing means avoiding fundamental risks by buying companies with very high business...
The wave of bankruptcies has started
Global equity markets have shown impressive strength over the past months, with surprisingly low volatility. One of the longest trading periods without a 5 percent daily drawdown ended on 5th of August 2024. When the stock market opened, the Nasdaq lost 900 points or...
Exaggeration based on hope for a new rate-cycle
Capital markets are sometimes prone to exaggeration. Aggressively marketed new business models regularly fuel the imagination of investors. As in the case of Peloton. Hopes of a revolution in the global fitness market caused the manufacturer of spinning bikes to soar...
The gravitational force of high interest rates
“Interest rates are like gravity in valuations. If interest rates are nothing, values can be almost infinite. If interest rates are extremely high, that’s a huge gravitational pull on values.” In one of his famous quotes in 2016, stock market legend Warren...
