Schacht Value Investors, LLC is a value-oriented investment management and research firm. As a registered investment advisor, we manage separate accounts for a variety of individuals and institutions.
Our investment approach is derived from the work of Benjamin Graham and other seminal figures like John Burr Williams and Philip A Fisher. Ben Graham is known as the father of security analysis and "value investing". In 1934, along with David Dodd, Graham wrote the first textbook on investment research entitled Security Analysis. In 1949, Graham authored The Intelligent Investor, which Warren Buffett calls, "the best book on investing ever written."
The value investing tradition that grew out of these works has guided many of world's most successful investors and is at the core of Schacht Value today.
The basic beliefs of value investing:
- The intrinsic value of any stock, bond, or business is determined by future cash inflows and outflows that are expected to occur during the remaining life of the asset. These cash flows are then discounted at the appropriate interest rate to the present.
- A thoughtful and intelligent analyst can reasonably determine the real, fundamental, or intrinsic value of certain securities.
- Market price and intrinsic value are often substantially different.
- Buying securities when a dramatic discount to intrinsic value exists offers investors a "margin of safety" protecting capital from erosion while allowing for substantial returns over the long term.
By applying the principles of value investing, we identify undervalued securities. These securities are built into a concentrated portfolio, which reflects our best ideas. Each holding, therefore, has a meaningful impact on investment performance.
Our job does not end with the purchase of a security. Ownership involves responsibility. We are active, not passive owners. Schacht Value monitors each holding while promoting good corporate governance and shareholder-friendly initiatives. This is consistent with being an investor in a business as opposed to a trader of stocks.
In this way, we hope to most effectively advance our goal as investors/owners, namely, the preservation and substantial appreciation of client capital over the long-term.
The structure and mission of our firm is deliberate. The current principals of Schacht Value, our families, and employees have a significant portion of our net worth invested alongside our clients.
Our investment philosophy, mindset, approach, and structure set Schacht Value apart from the rest of the investment management industry. If this is what you are looking for, then you are in the right place.
An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.
- Benjamin Graham, The Intelligent Investor