Investing for the coming generation

We scout for long-term equity investments in companies that can deliver radical and sustainable capital growth

Our Investment Philosophy 
Our approach centers on long-term, fundamental valuation based investing in growth companies.

We use extreme focus with  maximum 5 core positions and up to 20 opportunistic “cigar-butt” positions, ensuring a deep understanding of the companies we invest in. 

Selectivity is key—our commitment is to know each investment thoroughly.

The strategy articulates around 5 core principles:

  • Long-Term Focus: Our objective is to identify high-growth companies that will compound returns over more than 10 years.
  • Fundamentalist Value approach: We calculate the intrinsic value of a company using a comprehensive Discounted Cash Flow (DCF) model and than strive to acquire these companies at a 50% discount to their intrinsic value. This disciplined approach ensures the we invest with a safety margin to protect our capital and only buy businesses that we deeply understand. This could tend to generate a slight "technophobic" bias in the portfolio.
  • Non-Benchmark Strategy: We do not measure performance versus indices. Instead, we track the discount of the portfolio’s intrinsic value to its market value. 
  • Radical Capital Growth: We look for companies that shall multiply by 10x to 100x their value.
  • Patience: We intend to hold our core stocks for 10 years. While we track the evolution of the share price discount to the intrinsic value and trade very rarely.



Where & How do We Invest?
We seek exceptional growth companies built for long-term success. Our focus is to acquire businesses that offer following qualities:

  1. A Capital structure led by a family or a founder: This ensures strong leadership and capital budgeting decisions focussed on the long term interest of the firm.
  2. Consistent Cash Flow Growth: At least 10% annual average cash flow growth.
  3. High Returns on Invested Capital (ROIC): Minimum ROIC of 20% over the medium term.
  4. Ideally companies applying the concept of Scale Economics Shared i.e. companies that commit to sharing scale benefits with all stakeholders—customers, employees, and shareholders alike.  

These companies are very rare. We aim to find them, understand them, and acquire them well below what they're truly worth targeting a 18% IRR.
Our reach is global, but limited to listed equities.

Exploit the Heuristic Bias

We look for companies that have it in their genes to grow strongly for 10 to 20 years. Most fundamental analysts will incorporate a heuristic component into their valuations, where growth is assumed to decline after five years. This systematically undervalues long-term compounders and growth stocks. The companies we identify should have the ability to continuously surpass these long-term market projections.

Thoughts & Letters

05Jun

The Concept of Scale Economics Shared

The holy grail of compounding

Scale economics shared is a businesses philosophy that aims to share scale-driven efficiencies in following order: first customers, second employees, and ultimately shareholders—creating enduring competitive advantages. Costco is the best example of a successfull implementation of this philosophy. Costco charges only 15% above cost for its products and shares its growing efficiencies with its stakeholders, increasing customer loyalty and strengthening its competitive moat. Over time, intrinsic value grows significantly, even if the share price can remain stagnant in the short term. Costco share price rose from USD 2 to USD 1000 since 1986 a staggering 400 x multiple. Another examples of company successfully deploying this strategy is Amazon.


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Our philosophy of service dedicated to a full alignement with our Partners/Clients
We view our clients as long-term partners. Therefore we work as a partnership striving to achieve a complete alignment between our partners (clients) and the firm:

  • Low management fees: Starting at 60 basis points (bps), decreasing with the size of the partnership to a floor of 20 bps. The management fees goal is to cover the costs of the partnership. They are not a profit objective in themselves like most of the Asset Management industry is pursuing. As the partnership grows in size the fees will be reduced accordingly. The aim is to remove the bias towards over active trading & portfolio rotation used to justify high fees charged to clients. 

  • Performance fees: 20% of returns exceeding a 6% USD hurdle rate with a high watermark.

  • Reinvestment:
    At least 50% of performance fees earned by management shall be reinvested into the partnership. A significant portion of our personal assets is invested in this strategy.

  • Capital Commitment:
    • Partners are encouraged to invest money they can commit for the long term, effectively placing it in a “Coffee Can” to be opened after 10 years.
    • Additional opportunities may be offered to partners before seeking external investors when they arise. In general the partnership assets will grow when opportunities arise.

  • Exiting the partnership: this is possible with a six-month notice period. The shares will be returned in kind or sold for cash.

Further Services

Property Investments and Asset Management

Having served institutional real estate investors in Benelux, we offer, via our family company SNG-Global.lu, advice and management of niche and core real estate assets in this region.

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Wealth Management

For clients qualified as non-professionals we offer licensed wealth management services and advice with our close partner Alternative Gestion in Geneva. We will assist you in finding the most appropriate bank and private banking financing.

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Fund Structuring and Financial Engineering

We cooperate with the leading specialised advisors and orchestrate for you the ideal structure to hold your assets. In these matters we cooperate closely with Synergy.lu.

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Trust and Estate Planning

We collaborate with the most trustworthy tax advisors and estate planners to establish trusts and offer protector services via our partner Bender Brothers in Liechtenstein: https://www.benderbrothersco.com.

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Strategic Equity Valuation Consulting

On a case-by-case basis we may apply our unique valuation approach to strategic equity investments for our partners.

The founder and his history
Alexander Graf zu Stolberg-Stolberg is a Luxembourg-based investment professional with over 20 years of experience in asset management, private equity, and real estate. He has held leadership roles at Edmond de Rothschild, Fédérale Assurance, ING-Barings, Schroders Investment Management, overseeing mandates exceeding €500 million. A trusted advisor to family offices and institutions, he combines strategic insight and deep fundamental valuation insights with hands-on execution.

Fluent in six languages and educated at the University of St. Gallen, Bocconi, and Cornell, he brings a truly international perspective. Alexander is known for delivering strong returns through disciplined investment in direct equity real estate and alternative assets like music rights. His deep understanding of business strategy and implementation is rooted in his early years at McKinsey & Co.  

The Stolberg Family has more than 800 years of history, passing down wealth across generations, minting coins for the Holy Roman Empire, all while adapting through wars, political regime changes, revolutions, and economic shocks. This centuries-long knowledge and experience is what we share with our trusted clients and partners - combined with modern, disciplined equity investment methods pioneered by Benjamin Graham, Warren Buffett, and Tim Koller. 

Contact

  • 17 boulevard Royal L-2442 Luxembourg

https://www.jlstolbergpartnership.com