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FORUM Family Office

has been the vehicle to manage the assets of a Munich-based family since 1997
FORUM Family Office

Investment Philosophy I  -  Asset Classes

  • Forum only invests in companies:
-public equity
-private equity
  • Companies have the possibility to re-invest profits and cash flows internally at return rates which are not available to a financial investor. The Intrinsic Value of such firms can thus grow exponentially due to the effects of Internal Compounding. No other asset class offers this possibility.
  • All studies about the long-term performance of asset classes show that investments in companies, especially stocks and private equity, have generated the highest returns to investors.
  • A lot of outstanding companies are managed by persons, whose personal values are comparable to ours, more than in other asset classes.

Portfolio Structure

Portfolio Structure eng

Investment Philosophy II -  Circle of Competence

  • We invest only in sectors which we can fully assess: we want a high predictability, where the business will be in 10 years.
- by tendency „old economy“
- no technology-companies.
  • Historically we invested in the following sectors:
- Manufacturers with >30% After Sales Business (Consumables, Service or Spare Parts)
- B-to-B Services
- Med Tech and Healthcare Services
- Software.

Furthermore we are open for other sectors as well.

Investment Philosophy III - Risk

  • We define risk as the permanent loss of capital. Price fluctuations on the capital markets are not a risk for us. As long as the business model of our investments is intact, the intrinsic value will increase.
  • Our past experience shows that the biggest risk factors have been:
- making non-rational decisions due to mental biases or lack of discipline
- deficiencies in our management system
- inconsistencies in our investment philosophy.
  • The companies we are invested in tend to have strong balance sheets and are strongly cash-generative. Due to their recurring revenue characteristics they tend to be less cyclical and have pricing power. We are confident that a crisis would not endanger the continuity of these companies.