Investment Expert Bernd Schröder Favors Rapidly Growing, Quality Businesses
In an informal chat, let's delve into the financial journey of an individual named Mr. Schröder.
His first taste of earning cash came from working as a student in a machine factory, operating a CNC milling machine. The job was monotonous, consisting of placing parts, pressing a button, and then cleaning them. But the satisfaction of seeing his pay stub at the end of the shift was undeniable.
He spent that money on nice clothes, a fashion choice he chuckles at now when looking back at old photos.
His first venture into the markets was investing in Qiagen at the beginning of a new market. His most successful investment, however, was Apple. He was an early enthusiast of the phone, bought the stock, and has held it since then. His experience confirms that even ordinary everyday things can be profitable on the stock exchange.
One investment that didn't work out so well was a Chinese internet company he invested in on a friend's recommendation without thorough analysis. This experience taught him always to form his well-founded opinion before investing.
When it comes to making private investment decisions, Mr. Schröder discusses them with his wife, his trusted partner. His preferred investment strategy focuses on growth-oriented, quality companies. He finds that if the timing of purchase isn't perfect, these investments usually become successful over time.
Some key figures he considers when evaluating a security include the operating margin as a measure of the quality of the business model and organic growth compared to competitors as a measure of competitive ability.
Sustainability is crucial for Mr. Schröder when evaluating a business model. He doesn't have a specific role model in money management, as he finds many successful investors who could serve as a model.
His investing philosophy boils down to staying true to his investment thesis. A book he recommends for investors is "Warren Buffet: The Snowball: Warren Buffett and the Business of Life." In his opinion, stocks are the best asset class for long-term investment.
If he had one million euros to invest with a ten-year horizon, he would allocate the money almost entirely to a globally invested equity fund for long-term capital growth and income generation.
Due to his above-average performance in the investing world, Mr. Schröder has been recognized as a top performer in the annual stock exchange newspaper issue.
- Mr. Schröder's investment journey started with a monotonous job milling parts in a factory, but his first successful investment was in Apple stocks.
- His preferred investment strategy involves focusing on growth-oriented, quality companies, such as those offering sustainable business models.
- Schröder advises considering key figures like the operating margin and organic growth when evaluating a security for investment.
- With a million euros to invest for a decade, Mr. Schröder would allocate almost all the funds to a globally invested equity fund for long-term capital growth and income generation.
