Vimco is an abbreviation for Value Investment Management Company. This brings us directly to the core of our investment philosophy: value investing. The most important principle is that we invest in companies that are trading below their intrinsic value on the stock market. We employ a long-term investment horizon and do not allow ourselves to be swayed by the issues of the day. The emphasis lies on risk management with the objective of maintaining capital and purchasing power.
Architects of Wealth Management
We consider an investment portfolio as a construction, where we prepare a construction plan together with the client. Our asset management specialists act, as it were, as the architect of the investment portfolio, whereby the framework is determined by the risk profile, the investment objective and the investment horizon of the client.
Depending on the established risk profile, a portfolio generally consists of three building blocks. Firstly, the family investment holdings. These are listed investment companies of wealthy families, who have accumulated their wealth over the years through a distinctive business acumen and sophisticated entrepreneurial instinct. These companies have often stood the test of time and are used by these families to invest and manage family capital in a sustainable way. A long-term view is employed that is highly complementary to the value investment style. Moreover, these companies are generally traded at a discount relative to the intrinsic business value.
The second building block consists of value investment funds. By organizing our own value conference (the International Value Investing Conference) and attending conferences and seminars all around the globe, we have been able to compile a large shortlist of fund managers who have demonstrated that they can achieve an excellent return over a longer period by applying a value strategy. This enables us to select those funds that provide the best risk-return ratio for the risk profile established.
The third building block forms the capstone of the investment portfolio. These are the so-called specialties. The purpose of this building block is two-fold. On the one hand, we are actively trying to capitalize on market opportunities, such as investing in undervalued real estate portfolios. On the other hand, we try to add an additional risk diversification to investment portfolios. We do this by consciously selecting other investment categories, such as real estate, alternatives or precious metals. Precious metals can offer a safe haven in times of (financial) uncertainty and act as a kind of insurance on the portfolio. Alternatives are non-correlated investment products that strive to provide a stable return with a relatively low risk, independent of the movements of financial markets.