Warren Buffett: The secret of the most successful investor of all time
Invest in value indices with index certificates
Im Value-Stars-Deutschland-Index4 are promising second-line stocks based on Warren Buffett’s value strategy. The index reflects an actively managed reference portfolio that includes small and medium-sized companies from Germany that meet the strict criteria of the value strategy. The performance of this index has been convincing in the past: the Value Stars Germany Index not only beat the leading German index DAX, but also clearly outperformed the SDAX small-cap index several times.
When selecting companies for the index, the experienced team of analysts from the market letter “Der Investorsbrief” plays a decisive role. The experts have many years of expertise in value analysis. The Value Stars Germany Index is a prime example of how Warren Buffett’s investment strategy not only works for the star investor himself, but also ensures success for clever stock market professionals and investors.
About the Value Stars Germany Index Certificate4 of the Lang & Schwarz corporation, you can participate 1:1 in the performance of the index. The certificate fee is 1.75 percent per year, plus a performance fee of 20 percent if a new high-water mark is reached – i.e. the index reaches a new high.
Tipp: You can find out more about the Value Stars Germany Index and the associated certificate in the guide to investing in promising second-line stocks.
Of the QIX Germany8, managed by TraderFox GmbH and calculated by Solactive AG, would certainly please Warren Buffet as well. The QIX, which is the abbreviation for quality index, lists stocks that were selected based on quality and value factors à la Warren Buffett. Overall, the index consists of 25 German companies that impress with their quality and stability. The information brochure on QIX Germany states: “Successful companies with a high moat are recorded in a targeted manner using numerous operational key figures and included in QIX Germany.” The aim is therefore to put together a portfolio of companies with stable business models, high competitive advantages and favorable to moderate valuations.
When looking at the exact composition of the index, the closeness of the index composition to Warren Buffett’s strategy becomes particularly clear. Only companies that are characterized by high market entry barriers or competitive advantages are included in the index. The key figures return on equity, equity ratio, net profit margin as well as stable growth and price stability are decisive for the listing in QIX Germany.
The QIX Germany offers a good compromise in terms of stock selection, diversification and return opportunities. Investors who want to invest in the index can do so with the Open End Index Certificate from UBS8, the management fees are 1.5 percent per year. The certificate is best suited for investors with a medium to high risk tolerance who want to participate in the performance of the shares contained in the index with little capital and administrative effort.
The QIX Dividende Europa was developed for investors who want to invest in Buffett’s dividend strategy and European companies. The index lists the 25 best European dividend stocks. As with the QIX Germany, this index composition is also based on the premises of stability and security. With the UBS Open End Index Certificate (ISIN DE000SLA3LM9/ WKN UBS2QX), investors participate in the performance of the European index. When investing, 1.5 percent management fees are due.
A globally oriented index composed on the basis of the value strategy is the SG Global Quality Income Net Total Return Index (EUR) (ISIN DE000SLA3SG6/WKN SLA3SG). The core of the Solactive AG index is a well-founded selection of companies that have solid balance sheets, solid management and a stable foundation. The index is adjusted quarterly and contains between 25 and 75 stocks. Because the SG Global Quality Inc NTR is a total return index, dividend payments are added to the index. Anyone who wants to participate in this index can buy an index certificate, just like with QIX Germany. Investors can obtain such an index certificate from Société Générale without a time limit (ISIN DE000SG3JGQ9/WKN SG3JGQ). The management fees for these certificates are 1.0 percent per year.
Our recommendation: Do you want to invest according to Warren Buffett’s basic rules? Then you can with that Value Stars Germany Index Certificate4 and the UBS certificate on the QIX Germany8 invest in German quality stocks. The UBS certificate on QIX Dividende Europa is suitable for a European investment focus and a dividend strategy. If you want to invest globally, choose the Société Générale index certificate on the SG Global Quality Income Net Total Return Index.