On this page you will find frequently asked questions and answers about our online tools. If you can not find your question here, you can contact us personally via mail.
This website and the associated online calculator and database are intended to make stock market beginners to professional investors and investors within a very short time and with little effort.
The Fair Value Method is designed so that anyone can learn and apply the system in a short amount of time. After learning this method, you will be able to use the online tools at www.fairvalue-calculator.com to analyze stocks and invest properly.
The fair value method is a strategy that seeks to quickly determine the true value of stocks and then invest in stocks whose true value is higher than the current stock market price. You buy the euro for 50 cents.
If one invests in a diversified portfolio of stocks with high true value, it can be assumed that the value of the portfolio develops above average. The aim of the Fair Value Calculator System is that every user without prior knowledge can quickly and easily make meaningful equity investments.
The advantage of learning this method is that you can quickly and easily put together a meaningful portfolio without any fees for banks, consultants or funds and save on the fees, and thus perform better than bank clients, probably even better than many fund managers. And all without special knowledge or training, because the system is simple but ingenious.
Note: The content on this website reflects my own opinion and experience, and the fair value method is no guarantee of safe profits. Never take out a loan to buy securities. The stock market is often exposed to significant fluctuations and can lead to heavy losses. However, do not worry if you follow the things taught here, your chances of succeeding in the stock market are good. The guidelines listed on this website are based on scientific books, articles and studies.
The fair values in the database and the output values in the free self-service calculators are based on a formula that we developed ourselves. The formula is the result of years of statistical analysis and higher mathematics. First, we tested thousands of stocks for their true value. With more cumbersome procedures, companies could already be tested for their true value, much like company auditors do. From the results, we have derived a formula that yields nearly the same results, but brings many benefits.
The Fair Value Calculator method requires no prior knowledge and is suitable for beginners. Within a short period of time, stocks can be tested for their true value and, as a result, a portfolio of equities that is likely to outperform the market as a whole. In addition, the Fair Value Calculator is free, which gives the user a financial advantage over conventional fund investments.
The total market is the sum of all price gains and losses of stocks. So the market is the sum of all stocks in a given area. If one takes the average return of own shares and compares it with the market, one can read off how skillfully the shares were selected. The goal is, of course, that your own shares perform better than, on average, all other stocks in the market. Let's talk about fairvalue-calculator.com from the market or overall market, which means the average return on major stock indices such as DAX, Eurostoxx, Dow Jones, S & P 500, Hang Seng and more.
Banks very often charge subscription fees and fees for the management of the fund. These fees are usually so high that these funds outperformed the bottom line than the market as a whole. On the other hand, if you invest yourself in an online account and manage your own shares, you save those fees and can more easily beat the market.
In order to reduce the risk in a stock portfolio, it is advisable to include shares from different countries and of different sizes in the stock portfolio. Here you should put together as described in the article on asset allocation the stock portfolio. A statement as to which countries or which market capitalization promise more return can generally not be made. What is certain, however, is that intelligent asset allocation reduces the investor's individual risk.
In practice, the selection of stocks with a fair value of + 100% to + 200% has shown the best return in the last 13 years. The reason can not be explained and it could be a one-time effect. In general, we would recommend stocks that cost more than a dollar (that is, no penny stocks) and the fair value is between + 50% and + 500%.
That depends on many different factors. Large public companies often have a high market correlation. This means that if the market develops badly, this stock will hardly move for many years. However, one thing can be said: after an average of 7 years, times of crisis is over. In high-growth phases, stocks usually reach their fair value after a few years. Basically, it can be said that the minimum holding period should be several years.
The fair value strategy deliberately neglects technical chart analysis. The best time to buy stocks is always now. Studies have shown that market timing is unsuccessful in the long term. What makes sense is to rebuy shares as part of a rebalancing, or to sell shares of winning shares and convert them into new fair value shares.
In order to find a suitable online broker a Google search in the respective country is recommended to find test winners or the cheapest providers. In general, you should choose an online broker from your own country, as this deducts the appropriate taxes and laws of the country.
The average annual return since 2005 is 31.42% (as of 2005 - July 2019). Here you will find further research on the fair value strategy.
A fair value account should have at least 10 different shares. In addition, you should not over-diversify the portfolio, so we would not recommend more than 20 stocks.
Rebalancing the portfolio should be done approximately every 1-2 years. This is also dependent on the amount of money invested, as smaller orders will increase the order fees. In summary, the larger the invested capital the smaller the rebalancing distances.
Disclaimers: fairvalue-calculator.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on fairvalue-calculator.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The experts may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall fairvalue-calculator.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on fairvalue-calculator.com, or relating to the use of, or inability to use, fairvalue-calculator.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. With the Use of the Portfolio Manager you don´t actually buy stocks with real money. You just get the Information of how a stock portfolio could be compiled. To follow the instructions on this side is no guarantee for success on the stock market. Stock investments are risky and can cause financial damage or lead to money losses.