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December 3rd, 2020 | 12:04 CET

Aurelius, Berkshire Hathaway, SolGold: Invest like Warren Buffett

  • Investments
Photo credits: SolGold PLC

Conglomerates and holding companies are the general stores of the stock exchange: There is something for everyone, but these companies usually do not have a sharp profile. As a result, the market often does not recognize the intrinsic value of these companies and trades the shares at a discount. This discounted trading happened over many months with Aurelius. The investment Company has set its sights on medium-sized companies and focuses on companies with growth potential. After the purchase, Aurelius intervenes in the business and develops an individual concept for each of its subsidiaries. Once the holdings have grown and are ready for an exit, Aurelius sets about selling them - and often generates substantial profits.

time to read: 3 minutes | Author: Nico Popp
ISIN: GB00B0WD0R35 , DE000A0JK2A8 , US0846707026

Table of contents:


    Why Aurelius has further potential

    In the course of the crisis, however, the business with corporate investments has ebbed. In particular, investors who were looking for a quick windfall have left Aurelius. This trend is also supported by the fact that Aurelius today is less of an agile grasshopper and more of a classic long-term investment Company. Many shareholders have to get used to this. But there are also opportunities, especially in the long-term orientation: the more sustainable a development at subsidiaries, the higher the price that can be achieved on the market. Another argument in favor of Aurelius is that the management has already proven that it can handle a wide range of challenges and achieve good results for shareholders.

    The Aurelius share took off on the stock market last month and rose by a whopping 65%. On a one-year horizon, however, the Company still has a loss of 46%. From a technical chart point of view, however, the recent rise was a liberating blow and paved the way towards EUR 25 in the medium term. Investors should not overestimate the recent consolidation. Nevertheless, Aurelius remains speculative: if setbacks occur in the course of the pandemic, lucrative exits could move further into the distance. Conversely, however, the opportunity for promising long-term acquisitions also increases.

    Berkshire Hathaway now also makes tech

    The crisis is also regarded as a trendsetting market phase for Warren Buffett's Berkshire Hathaway, probably the world's best-known investment Company. In the past, the investment legend was able to conclude some very successful long-term deals during crises. Berkshire Hathaway is currently heavily involved in the insurance business, but also has holdings in Coca-Cola and American Express. The fact that Berkshire Hathaway definitely has a future and can even break new ground was demonstrated by the most recent investment in Cloudflare, a cloud provider in which Berkshire Hathaway has been invested since its IPO. Warren Buffett is not considered a tech investor, but the signature of his potential successors is already visible in this investment.

    Berkshire Hathaway's stock has been rising like clockwork for years. The slump of the first quarter has now been made up for. Although the Company has cancelled the dividend, which is essential for many investors, this only shows where the focus of the team around Buffett currently lies: On new investments. The share remains a solid choice for all investors with a long-term perspective and also gives the impression of being well-positioned for the future.

    SolGold: Billion-dollar Company with potential

    Less of a general store, but still a jack-of-all-trades is the British gold company SolGold. The Company was one of the first to secure gold properties in Ecuador. In the meantime, a considerable number of projects have come together, and SolGold is valued at the stock exchange at CAD 1.3 billion. What makes SolGold unique is that the Company carries out work on almost all properties. While other companies in the exploration sector often have a large number of brownfields, investors can expect a continuous news flow from SolGold. There is a reason for this: if the Company brings several projects into production, synergy effects could arise.

    SolGold shareholders wait for February

    SolGold is currently working on the feasibility study for its Alpala project. Due to limited access to the property and capacity constraints in laboratories in Chile, management has used the time to further optimize the potential mine design and production plans. More details of the project should be available to the market by early February. SolGold already describes its Alpala project as extremely promising and expects profitable business with copper in addition to the extraction of the precious metal gold. The share has recently shown excellent relative strength in a more challenging environment for precious metals. In the long term, the Company's decisive action during the Corona Crisis could pay off.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



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