Our objective is to generate long term returns, by investing in equities, with a value investing philosophy and a long-term investment horizon shared by both investors and fund managers.
The three pillars of Bestinver's investment philosophy are:
- Fundamental analysis
- Appropriate risk management
- Long-term vision shared by both investors and fund managers
Our investors come first. At BESTINVER we have a commitment with our investors: to fulfil our fiduciary responsibility. We must pursue the very best for them at all times.
Our mission is to obtain long-term returns. For that, we invest in equities with a value investing philosophy and a long-term horizon.
Historical performance of different assets (equities, fixed income, deposits, property market) over the long term confirms as much: the return of equities exceeds all others.
Investors like Benjamin Graham, Warren Buffett and Seth Klarman are celebrities for consistently outperforming market returns. All of them share a similar investment philosophy: value is different from price.
At BESTINVER we share this philosophy. We dedicate all our efforts to analysing the market seeking opportunities, identifying and investing in those companies where the real value is far in excess of the market price.
The share price, over the long term, will have to factor in the real value of the company. This convergence of price and value is what generates the returns we look for.
Value investing cannot be a tactical or short-term investment. Value investing must have a long-term horizon. The convergence of value and price is rarely instantaneous; it occurs over the long term.
We must be patient and wait for this process to culminate, keeping companies in our portfolios despite possible price fluctuations over time.
We recommend an investment horizon of at least 5 years for equity investment.
The intelligent investor can distinguish between changes in the real value of a company and what are simply fluctuations in its price.
An investor with a long-term horizon can benefit from value investing, selecting good companies, acquiring them at a good price and waiting patiently for the price and the intrinsic value of the company to converge.
History shows us that this is an effective method of generating returns in excess of the market.
It is necessary to start saving as soon as possible and to the highest extent. Every year of additional savings can make an enormous difference in the future.
However, saving does not guarantee maintaining the same purchase power in the future. Inflation diminishes purchasing power from year to year and the only way to prevent this is to protect oneself with the appropriate investment.
Investing long-term to achieve returns makes the effort of saving worthwhile. Saving is necessary, but it's not enough. Investing properly over the long term is the most effective way of saving.
