WE THRIVE IN CULTIVATING WEALTH THROUGH DISCIPLINED VALUE INVESTING, ENSURING LASTING SUCCESS WITH INTEGRITY AND PRUDENCE.
THE FUND
AT SHAREHOLDER VALUE BETEILIGUNGS AG, WE STRATEGICALLY INVEST OUR OWN FUNDS IN LISTED STOCK CORPORATIONS, WITH A FOCUS ON SMALL AND MEDIUM-SIZED COMPANIES THROUGHOUT GERMAN-SPEAKING COUNTRIES.
VALUE
WE VIEW SHARES AS LONG-TERM PARTNERSHIPS, AIMING TO PREVENT CAPITAL LOSS AND ACHIEVE ABOVE-AVERAGE RETURNS.
VALUE INVESTING FOCUSED ON QUALITY AND RESILIENCE
MINIMIZING COSTS BY CHARGING ONLY A FIXED SALARY AND INVESTING A SIGNIFICANT PORTION OF MY PERSONAL WEALTH ALONGSIDE INVESTORS, I AIM FOR A NET RETURN OF >10% ANNUALLY OVER A 5–7-YEAR MARKET CYCLE.
INVESTING IN THREE PROVEN BUSINESS MODELS:
GROWING NETWORK EFFECTS
The network effect creates a cycle where growing usage increases utility and demand. For certain products and services, the size of the user base itself becomes a key value driver.
ECONOMY OF SCALE, SHARED
A strategy where a company who benefits from 'economies of scale' shares those benefits with its customers, typically by offering lower prices, to gain long-term market share.
SERIAL ACQUIRER
Serial acquirers are companies that acquire smaller companies to grow and they can make for excellent investments.
NILS M. HERZING
*07.10.1990 IN LINDENFELS
Currently I serve as executive of Shareholder Value Beteiligungen AG, a publicly listed investment vehicle which invest in small- & mid-caps across Europe following a value investment approach. Before, I worked as an investment professional and later first partner of Active Ownership Capital (AOC) where I also was the first and youngest employee. Before that, I was the manager of a family office located in Regensburg. In 2013, I graduated with an B.A. in management, philosophy & art. In the same year I founded the Herzing Value Investment GmbH, a long-term investment holding which manages my personal wealth following value investment principals.
Afterwards, I earned an MSc in finance from the EBS Business School and EDHEC Business School during which I passed the first 2 levels of the CFA program. Since 2016, I’m a CFA charterholder and I passed all three exams on first attempt.
In 2017, I co-founded Forkon GmbH, the first vendor neutral SaaS forklift fleet management solution, and served as a board member until 2022.
Since December 2018, I served as a board member of the supervisory board of publicly listed PBKM (Polski Bank Komórek Macierzystych) S.A. and later Vita 34 AG until mid-2022.
INVESTEMENT PHILOSOPHY
“I always start trying to deeply understand the reality & quality of a business first. Evaluating its fair price follows second, and investing in it is only done in the third step, once a margin of safety and hurdle rate requirement is met.”
LONG-TERM OUTPERFORMANCE (>5 YEAR HORIZON)
RISK AVERSION
PREVENT A PERMANENT LOSS OF CAPITAL BY USING QUALITY FILTERS (E.G. SUCCESSFUL MANAGEMENT, STRONG BALANCE SHEET, USE OF “OWNER EARNINGS”)
CONCENTRATION
HAVE A LESS DIVERSIFIED PORTFOLIO OF ONLY 8 TO 12 COMPANIES AS OVER-DIVERSIFICATION DOESN´T ADD VALUE AND DESTROYS PERFORMANCE
HURDLE RATE
HIGH DISCOUNT RATE ENSURES CONSIDERATION OF THE BEST IDEAS. THE STRONGEST STOCK PRICE IRRATIONALITY IS IN LOW FREE FLOAT SMALL- AND MID-CAP COMPANIES.
CATALYSTS
INVEST AROUND CATALYSTS THAT CAN TRIGGER THE REVERSION OF A STOCK UNDERVALUATION
INVESTMENT EDGE
GAIN AN INVESTMENT EDGE THROUGH TWO PILLARS:
INFORMATIONAL EDGE:
OBTAIN PRIMARY INFORMATION THROUGH INTERVIEWS AND FIELD RESEARCH.
BEHAVIORAL EDGE:
EMBRACE A LONG-TERM MINDSET (>5 YEARS) AND RATIONALTHINKING.
FOCUS ON
EUROPE
COMBINING EXPERIENCE WITH A VALUABLE NETWORK
SMALL & MID CAP
EXPLOIT INTRANSPARENCY AND IRRATIONALITY
"SKIN IN THE GAME"
PRIORITIZE FAMILY OR OWNER-MANAGED BUSINESSES