Why we want you, as a shareholder, to understand our investment philosophy, and why this matters.
We want you to know exactly what you are investing in. Because only those who understand something are likely to stay committed to it.
First, it is important to understand one crucial difference between you and DAVIGO:
You are not the one investing in many individual holdings or companies and having to manage them. We are. We do the work. This is where we are the professionals. You benefit. Understanding this is central, and above all, a huge relief for you.
When you buy a DAVIGO share, you become a co-owner of a professional investment holding company. This means you do not have to take care of the individual investments yourself. DAVIGO handles this complex task for you.
What would it look like if you did it yourself?
If you wanted to build your own investment portfolio consisting of thousands of companies worldwide, you would have to:
- Develop your own investment philosophy and strategy
- Define clear rules for buying and selling
- Implement these rules with discipline and without emotion
- Constantly monitor and analyze markets
- Deal with investment decisions every day
This requires time, expertise, technology, and above all, iron discipline.
DAVIGO frees you from this burden.
As a DAVIGO shareholder, you benefit from a mature, tested investment philosophy that has been successfully applied for years. DAVIGO AG assumes full responsibility for:
- Selecting the right investments
- Timing purchases and sales
- Weighting the portfolio
- Managing risk
- Implementing the strategy in an emotionless, rule-based manner
Why you should still read these FAQs
Even though the investment philosophy is entirely in the hands of DAVIGO AG, it is important that you, as a shareholder, understand how DAVIGO manages and administers its company capital. These FAQs give you insight into the principles and methods according to which DAVIGO manages the investment portfolio, of which you are a co-owner as a shareholder.
Transparency creates trust. And trust is the foundation for a long-term, successful partnership between you as a shareholder and DAVIGO as your investment holding company.
DAVIGO – we take care of the investment philosophy, you benefit from the results.
FAQs on the Investment Philosophy
DAVIGO AG does not rely on gut feeling or subjective assessments, but exclusively on mathematical precision and the share price as the only variable.
The approach of DAVIGO AG:
For investments in publicly listed equities, the company uses a rule-based system called “DAVID”, which operates 24/7 and makes investment decisions for the investment portfolio strictly according to predefined mathematical criteria, completely without emotion.
The share price is the truth:
For DAVIGO AG, the price of a share reflects the collective knowledge of millions of buyers and sellers. It is a number that can be calculated with, and the only reliable information about the market’s current assessment.
No charts, no forecasts:
DAVIGO AG does not use chart analysis and does not try to predict the future. Instead, the system dynamically responds to current price data and identifies patterns based on statistical probabilities.
The result for you as a shareholder:
You benefit from disciplined, rule-based decisions without emotional distraction, exactly what makes long-term portfolio management successful.
DAVIGO AG – mathematics instead of gut feeling in managing your participation.
Because from our perspective, the price is the only objective truth of the market, expressed in a number that can be calculated with.
Price instead of opinions:
While other investment companies rely on fundamental metrics, analyst opinions, or company forecasts, DAVIGO AG trusts the market itself. From our perspective, the share price already contains all available information, processed by millions of market participants.
No subjective interpretations:
Quantitative analyses can easily be misleading and cloud judgment. They are often based on historical data and extrapolations. DAVIGO AG, by contrast, works with the current price, clear and immediate.
Statistics instead of speculation:
Price movements statistically contain the probability of whether a share will rise or fall. The DAVID system identifies these patterns and uses them for decisions within the investment portfolio.
Trust in the market:
DAVIGO AG obtains its information directly from the market instead of trying to be smarter than all other market participants combined.
DAVIGO AG – the price is the truth, everything else is interpretation.
Yes, absolutely. And this is completely normal and planned for.
The honest truth:
DAVIGO AG’s investment portfolio will record losses at different points in time. This happens as regularly as breathing in and out. There is no return without volatility and risk of loss.
Why this is important for you:
As a shareholder, you should understand that temporary fluctuations in value are part of the business. DAVIGO AG communicates this transparently so that you have the right expectations.
What matters is the final result:
Losses on individual positions are part of the business. What counts is that, in the end, the gains in the portfolio are higher than the losses. This is exactly what DAVIGO AG’s system is designed for: consistently limiting losses and letting gains run.
DAVIGO AG’s approach:
The company accepts losses as part of the process and has clear rules for dealing with them. Every investment in the portfolio is equipped with a stop loss that systematically limits losses.
DAVIGO AG – honest about risks, consistent in portfolio management.
DAVIGO AG implements this old stock market principle digitally and consistently. That is exactly what makes the difference.
Let profits run:
DAVIGO AG does not sell a position simply because it has risen by 20%, 50%, or 100%. As long as the upward trend remains intact, the company stays invested. No price targets are set, and positions are never actively sold merely to take profits.
Selling takes place through stop loss:
Every investment in the portfolio is ultimately “stopped out”. This means that DAVIGO AG only sells when the trend reverses. In this way, positive movements are used as fully as possible. More than 80% of investments were traded successfully, with an average holding period of more than 800 days for successful positions.
Limit losses consistently:
For every investment, a stop loss is calculated at the time of entry and continuously adjusted. If a position moves against the company, it is closed quickly and without emotion.
Your advantage as a shareholder:
You benefit from portfolio management that applies this rule consistently, without the emotional mistakes that retail investors often make.
DAVIGO AG – old wisdom, digitally perfected in portfolio management.
Democratic at entry, dynamic in development.
Equal starting point for all:
Every buy signal, regardless of the company, receives the same percentage weighting. There is no prior assessment, no “more important” or “less important”. There is also no evaluation of whether a share price is “too expensive” or “too cheap”.
Multiple buy signals possible:
For one and the same company, the DAVID system can generate several buy signals, depending on trend strength and price development. Each of these signals is again implemented with the same percentage weighting.
The strongest win automatically:
A company with a strong upward trend can trigger a dozen follow-up buy signals, while a weaker stock may generate only one or two signals. The result: the strongest performers automatically receive the highest weighting in the portfolio, not through subjective decisions, but through market development itself.
Auto-dynamic portfolio management:
The portfolio essentially reorganizes itself, daily, rule-based, and without human intervention. Successful positions grow through follow-up purchases, while weak positions are stopped out.
Your advantage as a shareholder:
You benefit from a portfolio that automatically concentrates on the most successful investments, without subjective wrong decisions distorting the result.
DAVIGO AG – democratic entry, performance-driven portfolio.
Because the time of sale determines profit or loss, and therefore the long-term success of the portfolio.
DAVIGO AG’s focus:
For long-term success, it is crucial to know when the company should not be invested, both in the overall market and in individual companies.
Outperformance through avoidance:
The phases in which DAVIGO AG reduces the investment ratio or exits individual positions are intended to generate decisive excess returns and lower risks. Avoiding losses has a significant impact on the overall performance of the portfolio.
Fast response:
The DAVID system detects downward movements very quickly, allowing DAVIGO AG to exit positions accordingly before larger losses occur.
Your advantage as a shareholder:
You benefit from portfolio management that does not try to find the perfect entry point, but systematically implements the optimal exit.
DAVIGO AG – the exit determines portfolio success.
No. Good investment approaches are timeless.
The conviction:
Due to human behavioral patterns, the market always remains the same in a certain sense, even though it is constantly changing. An almost 100-year-old specialist book such as The Game of Games is still relevant today.
Built for change:
DAVIGO AG’s methodology actually depends on market changes and responds dynamically to volatility. The company assumes change as a given. The system is designed for it.
Long-term stability:
Across complete market cycles, including bull and bear markets, we believe the approach works without fundamental adjustments. The rules remain constant, while the application is dynamic.
Your advantage:
You invest in a company with a timeless investment philosophy, not in a system that has to be constantly readjusted.
DAVIGO AG – timeless principles, dynamic implementation.
A method in which fixed rules respond to new, unknown data. No self-optimization, no interpretations.
How it works at DAVIGO AG:
The rules, criteria, and principles for selecting securities are fixed from the outset. The information comes from “outside”, meaning it is fed into the system. DAVID responds to new data and makes decisions according to existing rules.
No manipulation:
DAVIGO AG does not interpret or preprocess the data. This means that the simulation results cannot be equated with conventional backtests, which are often polished or optimized.
Real conditions:
The simulations were carried out under real conditions, taking trading costs and market distortions into account. The results are robust and replicable.
The contrast:
Unlike self-learning neural networks, DAVIGO AG’s system remains constant in its rules and does not adapt itself.
DAVIGO AG – fixed rules, reliable results in portfolio management.
The company uses it — rather than fearing it.
Volatility as opportunity: Without price fluctuations, there are no returns. DAVIGO AG accepts volatility as a necessary part of portfolio management.
Dynamic market exposure: DAVIGO AG adjusts its market exposure dynamically between 0% and 130%, depending on market conditions. Over the long term, the company aims for an average exposure of around 100%.
Fast reaction: When volatility increases and markets move downward, the DAVID system quickly detects the change and adjusts portfolio positions accordingly.
Rules instead of market timing: DAVIGO AG does not attempt to predict market movements. Instead, it reacts in a rule-based manner to what the market is actually doing.
Protection through stop-loss mechanisms: Each investment is managed with a dynamic stop-loss that adapts to current volatility — tighter in calm markets and wider during more volatile periods.
DAVIGO AG — volatility is the working environment, not the enemy.