One of the new weekly additions 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 Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and … Read More
James Montier: You Can Turn Behavioral Biases Into An Advantage Using A Valuation-Based Framework
We’ve just been listening to a great interview with James Montier on Meb Faber’s podcast. During the interview Montier provides some great insights to help investors protect themselves from their behavioral biases. Montier says that you can actually turn behavioral biases, like anchoring, into an advantage using a valuation-based framework. … Read More
Ed Thorp: The Importance Of Having An Edge In Investing
Here’s some great investing insights from Ed Thorp, author of Beat the Dealer and A Man for All Markets, from his interview with Jack Schwager in his book – Hedge Fund Market Wizards. During the interview, Thorp explained the importance of having an edge in investing and matching your skill set … Read More
Prem Watsa: If You Get Two Out Of Three Right, You Will Have One Of The Best Track Records
Here’s a great recent interview with Prem Watsa discussing investing with Bloomberg’s Amanda Lang on “What’d You Miss?”. During the interview Watsa shares some great insights on what makes a great investor. Here’s an excerpt from that interview: Amanda Lang: Have there been investments that you regret? Prem Watsa: Oh! I … Read More
Seth Klarman Protege David Abrams Says “Value Investing Is The E = mc² Of Money And Investing”
One of our favorite investors to follow here at The Acquirer’s Multiple is Seth Klarman’s protege David Abrams. Abrams typically shuns the public limelight so it’s difficult to find interviews where he shares his investing strategy. The WSJ did a great story on him back in 2014 titled – Hedge-Fund World’s … Read More
This Week’s Best Investing Reads 05/25/2018
Here is a list of this week’s best investing reads: The Pygmalion Effect: Proving Them Right (Farnam Street) Stocks prices are a proxy for our beliefs about the future (The Reformed Broker) Condemned to Repeat the Mistakes of the Past (csinvesting) On Second Thought… (The Irrelevant Investor) To Be A New Fool In The World (Jason Zweig) Thinking Outside … Read More
Acquirer’s Multiple Stocks Appearing in Icahn, Dalio, Greenblatt Portfolios
One of the new weekly additions 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 Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and … Read More
Nassim Taleb: How Frequent The Profit Is Irrelevant; It Is The Magnitude Of The Outcome That Counts
Here’s a great investing lesson by Nassim Taleb from his book Fooled by Randomness. Similarly to Michael Mauboussin in this article, Taleb makes the point that it’s not how frequently you profit from your investments that important, it’s the magnitude of the outcome that counts. Here’s an excerpt from the book: … Read More
Michael Mauboussin: The Babe Ruth Effect Generates More Successful Returns
Here’s a great lesson from Michael Mauboussin’s book – More Than You Know. Mauboussin highlights the point that when it comes to successful investing it’s not about the frequency of correctness that matters in stock picking, it’s the magnitude of correctness that matters. This is called the Babe Ruth Effect. Here’s an excerpt from … Read More
Howard Marks: The Greatest Formula For Long-Term Wealth Creation Is…
One of our favorite investing books here at The Acquirer’s Multiple is The Most Important Thing by Howard Marks. There’s one passage in particular in which Marks discusses how keeping ones ego in check is the greatest formula for long-term wealth creation. Here’s an excerpt from the book: The sixth … Read More
This Week’s Best Investing Reads 05/18/2018
Here is a list of this week’s best investing reads: Stanley Druckenmiller’s Big Mistake (The Irrelevant Investor) Just Half a Percent (A Wealth of Common Sense) Push and Pull (The Reformed Broker) Spies, Crime, and Lightning Strikes: The Value of Probabilistic Thinking (Farnam Street) The Art of Contrary Thinking (csinvesting) If Collaborative Fund Invested in Public Stocks (Collaborative Fund) Notes From Sohn … Read More
Joel Greenblatt Says Opportunity Is There If You Know How to Value Businesses
Here’s a great interview with Joel Greenblatt speaking to Erik Schatzker at Bloomberg Markets. Greenblatt discusses active versus passive investing and some of the reasons why he still believes active investing is the better option saying: “I was asked to give a speech at Google last year and I started it … Read More
Acquirer’s Multiple Stocks Appearing in Greenblatt, Gabelli, Grantham Portfolios
One of the new weekly additions 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 Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and … Read More
Is It Time For Value Investing to Return to the Limelight?
Here’s a great article from Peter Langerman at Franklin Templeton Investments where he discusses an optimistic outlook for value investing. Here’s an excerpt from that article: We believe macroeconomic developments in the United States and elsewhere could prove a fillip to value investing after several years of underperformance. The combination … Read More
Jim O’Shaughnessy: 25 Timeless Lessons From 30 Years Of Value Investing
One of our favorite value investors here at The Acquirer’s Multiple is Jim O’Shaughnessy. O’Shaughnessy recently wrote an awesome series of tweets detailing twenty five investment lessons that he’s learned over thirty years of value investing. They’re a must read for all investors. With Jim’s permission here are his twenty … Read More
Chart showing Median Acquirer’s Multiple (EV / EBIT Operating Income) and Rolling 12-Month Returns in the Large Cap 1000 Universe (1999 to 2018)
The chart above shows the median acquirer’s multiple (LHS) in the largest 1000 US-listed stocks and ADRs each quarter since 1999 versus the subsequent 12-month returns for the universe (RHS, inverted). The relationship isn’t particularly predictive (R-squared is 0.12). The median acquirer’s multiple right now is 20.11. That sits at the … Read More
George Soros: “I Believe That Market Prices Are Always Wrong In The Sense That They Present A Biased View Of The Future”
One of our favorite investing books here at The Acquirer’s Multiple is The Alchemy of Finance by George Soros. There’s one passage in particular which encapsulates Soros’ successful approach to investing and what makes him different to most other investors. Soros writes: In the first ten years of my business … Read More
Tobias Carlisle: Interview With ‘The Sure Investing Podcast’ On The Acquirer’s Multiple & Deep Value Investing
Here’s a great interview at The Sure Investing Podcast with our Chief here at The Acquirer’s Multiple – Tobias Carlisle. During the interview Tobias discusses his book – The Acquirer’s Multiple and how he developed his deep value investing strategy. To listen to the interview click on the ‘play’ button below: Please take … Read More
Rich Pzena: The Best Way To Protect Yourself Against Value Traps
One of our favorite value investors here at The Acquirer’s Multiple is Rich Pzena. One of the best Pzena interviews is one he did with the Graham & Doddsville Newsletter some years ago in which he provided some great insights into how to protect yourself against value traps. Here’s an … Read More
This Week’s Best Investing Reads
Here is a list of this week’s best investing reads: Full Collection Berkshire Hathaway Annual Meetings (Videos) (Warren Buffett Archive) The Nerds Were Right. Math Makes Life Beautiful. (Farnam Street) You Are What You Read (The Reformed Broker) Bad Advice Can Be Expensive (A Wealth of Common Sense) Should I Time the Market? (The Irrelevant Investor) Nobody Planned This, … Read More