**BUK**RG Value investing is an investment strategy based on the identification of investment properties with above-average characteristics. The idea of value investing comes from the world of bonds and real estate, where the quality and the price is determined by ratings. The classification of investment properties on the quality of bonds and real estate has a long tradition. Ratings take into account the creditworthiness of the debtor and distinguish between two quality classes - investment grade and speculative grade - the latter is also referred to as "junk". Value investing is based mainly on the stock assessment, and some valuation ratios such as price-earnings and price-book ratio play a central role. Value is either defined by the valuation levels compared to the overall market or sector. A fundamental company analysis is of secondary importance. A value investor buys a company because it is undervalued and that in his view it is still a good company. A quality investor buys a business because it is an excellent company and also has an attractive valuation level. Modern growth investing places particular focus on growth stocks. Earnings estimates by experts are just as drawn to rate the earnings per share. Growth investors buy stocks with great profit thus with primarily growth and high earnings expectations, regardless of valuation levels. Quality investors prefer stocks whose earnings growth lies on a solid fundamental base and have a justified price. The identification of quality shares is systematically defined on the basis of set criteria. Selection criteria that have a proven influence and explanatory power to the operational success of a company can be divided into five categories: a) Financial strength: A review of the financial strength of a company is largely based on the balance sheet and comparisons of financial ratios with sector or market averages, including a direct comparison with other companies. In this case, the numerical values are considered not in isolation but seen in the overall context of the company. Special attention should be paid to income, cash flows including free cash flow and debt. The source of income should also be taken into consideration. b) Upside potential: The quality and cheap equity valuations are closely linked. While a rigorous quality filter can partially protect the stock from price declines due to a negative business development and guarantees the inclusion of a reasonable valuation of the stock in the medium to long term. c) Business model: The analysis of the business model provides information as to which strategy the company will use on the markets and on what range. The business model must be comprehensible and on one hand should be focused on its core expertise, but should also be sufficiently diversified. d) Market environment: An analysis of the market environment is essential for assessing the quality of a business model. It should be part of an industry analysis. Quality companies must be competitive in a given market and not just stand out in a weak industry. d) Management: A company is usually only as good as the people of which it is held. An assessment of management is so important, but also relatively difficult. Indicators of good management may be low turnover rates. Little change, especially in the management team is often a good sign. The management of a company should also be logical and clearly structured. A faster implementation rate, may be evidence of good communication and working processes.