Tim Schäfer’s Strategy in Market Uncertainty
The stock market expert and millionaire Tim Schäfer employs a long-term ‘Buy and Hold’ strategy, which he himself calls “extreme Buy and Hold.” His approach is based on patience, discipline, and the strategic use of crisis phases as buying opportunities.
Core Points of the Strategy
- Utilizing Crises as Opportunities: Schäfer emphasizes that uncertainty in the markets – for example, due to political risks or economic turbulence – offers ideal entry points for long-term investments.
- Focus on Fundamentals: Despite short-term risks like Trump’s tariff policy or antitrust proceedings against tech companies, he remains committed to companies with strong balance sheets, which he refers to as “fortresses” (e.g., major US tech firms).
- Dividend Stocks as Stability Anchors: Dividend-rich stocks serve him both for risk diversification and passive income generation.
Concrete Recommendations
Tech Sector Under Pressure: Although tech stocks may currently be suffering, Schäfer sees long-term potential in big tech companies due to their market dominance and financial robustness.
Small Caps with Growth Potential: In recent analyses, he specifically highlights 18 individual stocks, likely including companies from defensive sectors or cyclical industries with attractive valuations.
Success Factors for Individual Investors
Schäfer built his fortune of 3.5 million USD through consistent saving and reinvested dividend earnings:
- Regular Investing: Monthly savings plans in high-quality stocks despite market fluctuations.
- Emotional Discipline: No panic-driven selling during corrections – instead, additional buying during price declines.
His advice is: ‘Stay calm and invest’ – a mantra that he lives by even in volatile phases, such as the current trade conflict situation.