PHILOSOPHY OF VALUE
9 principles for investing with discipline and satisfaction over the long term.
For over 40 years, we have followed a philosophy based on 9 principles that form the foundation of our returns:
Investing means owning real companies and focusing on their intrinsic value, not on trends.
VALUE PHILOSOPHY
For over 40 years, we have applied the principles of the Value Philosophy to guide our investment decisions toward consistent and long-term performance.Owning a stock, an equity ETF, or an equity fund means owning a share of a real company—its business model and its ability to generate value over time.
We are investors who follow value.
- Value requires patience
- Value is built over time
- Few transactions, thoughtful decisions
- The opposite of short-term speculation
AGAINST THE “LOTTERY” MINDSET
Most investors are attracted by the promise of quick gains, like a sudden win. We follow the opposite approach: like any successful long-term enterprise, value is created progressively through discipline, time, and consistency.
Our objective is not to “guess” the market, but to build returns over the long term.
EMOTIONS AND THE MARKET
According to the Value Philosophy, markets are not always efficient. In the short term, misalignments can emerge due to emotions, news, and irrational behavior, which tend to correct themselves over the medium to long term generating sustainable returns.
“In the short run, the market is a voting machine; in the long run, it is a weighing machine.”
- In the short term, fear and euphoria tend to dominate
- In the long term, fundamentals prevail
- Ultimately, it is the intrinsic value of companies that determines prices
DISCIPLINE AND CONTRARIAN THINKING
The market constantly swings between euphoria and fear because it is driven by people, who are naturally emotional. Value investing requires a rigorous, disciplined, and rational approach, capable of:
- Buying when market sentiment is negative
- Selling when optimism becomes excessive
We do not follow the market.
We analyze value.
MEMORY AND TIME HORIZON
Investors tend to have a very short financial memory, quickly forgetting the lessons of the past.We believe it is essential to study the history of economic cycles and markets in order to make rational decisions.
"The four most dangerous words in investing are: This time it's different." — John Templeton
NO MARKET TIMING, NO TRADING
Our Value Philosophy allows us to stay invested without being swayed by market narratives or short-term emotions. Remaining invested over the long term is far more important than trying to constantly anticipate market entries and exits.
- No market timing
- No speculative trading
- Focus on long-term compounded growth
QUALITY AND VALUATION
We do not select an investment simply because it appears “on sale” at a given moment. Our selection process is consistent and cross-asset, covering equities, ETFs, funds, and bonds, with the goal of gaining exposure to:
- Leading companies or issuers in their respective fields
- Strong fundamentals and sustainable growth prospects
- High-quality management or investment processes
- Attractive valuations relative to intrinsic value
We seek excellence even during periods of temporary difficulty, choosing the most efficient investment instrument to express it.
RISK AND MARGIN OF SAFETY
Risk is not price volatility—it is the permanent loss of invested capital.
To reduce this risk, it is essential to invest with a margin of safety: acquiring high-quality companies at valuations that provide protection against unforeseen events.
GOING AGAINST THE CROWD
Contagion theory shows how individuals tend to follow the crowd, often irrationally.
In financial markets, this behavior leads to excesses, speculative bubbles, and sharp corrections.
The Value Philosophy
An independent, rational approach, free from crowd influence.
We favor temporary pessimism over easy enthusiasm, as true value often emerges in those moments and establish the foundation for robust returns.
