In Howard Marks’ Book – Mastering The Market Cycle, he provides some great statistical data that shows just how much investor psychology impacts markets. Here’s an excerpt from the book: Putting it all together, fluctuations in attitudes and behavior combine to make the stock market the ultimate pendulum. In my … Read More
Rich Pzena: Earnings Growth Rates Higher For Value Stocks Than Growth Stocks Next Two Years
In his recent interview on ValueWalk, Rich Pzena discussed why earnings growth rates are higher for value stocks than growth stocks for the next two years. Here’s an excerpt from the interview (H/T Forbes): “A typical value cycle that’s tied to an economic cycle lasts for quite some time,” Pzena … Read More
James Montier: The Dangers Of Diversification
In his book – Value Investing: Tools and Techniques for Intelligent Investment, James Montier discusses the dangers of diversification. Here’s an excerpt from the book: If religion has been the cause of most wars, then ‘diversification’ lies close to the heart of many financial disasters. All too often, too narrow … Read More
Dan Loeb Top 10 Holdings – Latest 13F
One of the best resources for investors are the publicly available 13F-HR documents that each fund is required to submit to the SEC. These documents allow investors to track their favorite superinvestors, their fund’s current holdings, plus their new buys and sold out positions. We spend a lot of time … Read More
VALUE: After Hours (S03 E39): Value Cheap For A Reason? Late-Innings Complacency, Munger Buys More $BABA
In this episode of the VALUE: After Hours Podcast, Jake Taylor, Bill Brewster, and Tobias Carlisle chat about: Value Is Cheap For A Reason Gamification Of Digital Advertising Late Innings Complacency Consider Asset Classes Other Than Stocks Munger Doubled Down On $BABA How $MO And Big Tobacco Can Still Survive … Read More
Returns to Companies with Negative and Positive Cash Flow from Operations (Russell 3000 OCF TTM <= 0 vs OCF TTM > 0) January 1999 to October 2021
Companies that generate cash flow from operations consistently outperform those that don’t, but not always. Since 1999 companies in the Russell 3000 that generate cash flow have returned about ten times more than the cash incinerators. That’s probably what you expected to see. But the scale of outperformance might be … Read More
Stock In Focus – TAM Stock Screener – Vale SA (NYSE: VALE)
As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners. One of the cheapest stocks in our Stock Screeners is Vale SA (NYSE: VALE). Vale is the world’s largest iron … Read More
Charles Munger: Bet Heavily When An Opportunity Presents
In Tren Griffin’s Book – Charlie Munger: The Complete Investor, there’s a great quote by Munger on betting heavily when an opportunity presents in investing. Here’s an excerpt from the book: “Experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to act … Read More
Peter Lynch: The Next 10-Bagger Is Staring You In The Face
In his book – One Up On Wall Street, Peter Lynch discusses how 10-baggers are in plain sight, but for some reason investors like to invest in companies and industries they know little about. Here’s an excerpt from the book: Can’t think of any such opportunity in your own life? … Read More
This Week’s Best Value Investing News, Research, Podcasts 10/15/2021
This week’s best investing news: History of Sovereign Defaults & Debt Limits (Jamie Catherwood) Where Are We In The Market Cycle? (Felder) When Narrative Takes Flight (Epsilon Theory) It Sounds Crazy (Collaborative Fund) Diversification, Correlation, and the Business Cycle (Verdad) Time Can Take a Toll (Humble Dollar) Worried About the Future of the 60-40 Portfolio? We Look … Read More
Today’s Cambrian Explosion Is Stifling Competition
In their recent episode of the VALUE: After Hours Podcast, Jake Taylor, Bill Brewster, and Tobias Carlisle discussed Today’s Cambrian Explosion Is Stifling Competition. Here’s an excerpt from the episode: Tobias: The problem that we have at the moment is that all of the COVID restrictions make it much, much … Read More
More than half of U.S. growth stocks have negative earnings, says GMO
GMO says more than half of U.S. growth stocks have negative earnings, yet growth has dramatically outperformed in the past few years. I ran the same test for all stocks in the U.S. in the Russell 3000 using trailing twelve month operating income (EBIT). The blue line shows the number … Read More
This Acquirers Multiple Stock Appearing In Simons, Greenblatt, Gabelli Portfolios
Part of the weekly research here at The Acquirer’s Multiple features some of the top picks from our Stock Screeners and some top investors who are holding these same picks in their portfolios. Investors such as Warren Buffett, Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, … Read More
Rob Arnott: We May Never Again See A Better Opportunity To Buy Value Stocks
In his recent article in the AFR Australia, Rob Arnott explains why we may never again see a better opportunity to buy value stocks. Here’s a excerpt from the article: We believe the economic pullback and value’s retraction are temporary. Vaccines are demonstrating efficacy in reducing adverse health effects and … Read More
Chuck Royce: U.S Small Caps Set To Outperform U.S Large Caps
In the latest Q&A with Chuck Royce and Francis Gannon at Royce, Chuck Royce discusses why U.S small caps are positioned to outperform U.S large caps. Here’s an excerpt from the Q&A: Royce: It’s admittedly a bit of a mixed picture. We’re in an odd position where, for many people in … Read More
GMO: Making Money on Companies That Make No Money
In their latest market commentary titled – Making Money On Companies That Make No Money, GMO discuss the fact that today, 60% of the Growth stocks in the Russell 3000 Index make no money, yet these very companies have been generating huge returns in price movement over the past few … Read More
Most Of The Time You’re In A Drawdown
In their recent episode of the VALUE: After Hours Podcast, Jake Taylor, Bill Brewster, and Tobias Carlisle discussed Most Of The Time You’re In A Drawdown. Here’s an excerpt from the episode: Tobias: As Meb Faber points out, there’s only two states in the market. You’re either at an all-time … Read More
One Stock Superinvestors Are Selling
As part of the weekly research here at The Acquirer’s Multiple we’re always interested in superinvestors who hold the same stocks that appear in our Acquirer’s Multiple Stock Screeners, based on their latest 13F’s. Investors such as Warren Buffett, Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth … Read More
Warren Buffett: Most Major Acquisitions Don’t Make Sense
In his 1994 Shareholder Letter, Warren Buffett explained why most major acquisitions don’t make sense. Here’s an excerpt from the letter: The sad fact is that most major acquisitions display anegregious imbalance: They are a bonanza for the shareholders of the acquiree; they increase the income and status of the … Read More
Nassim Taleb: When I Don’t Have Skin In The Game, I Am Usually Dumb
In his book – Skin In The Game, Nassim Taleb discusses the importance of having skin in the game, particularly as it relates to investing. Here’s an excerpt from the book: Let us return to pathemata mathemata (learning through pain) and consider its reverse: learning through thrills and pleasure. People … Read More