The Acquirer’s Multiple® Canada All TSX Stock Screen Backtest

Tobias CarlisleStudy2 Comments

Chart 1. Returns from January 2, 1999 to June 16, 2017 (Log.) We backtested the returns to a theoretical portfolio of stocks selected by The Acquirer’s Multiple® from the Canada All TSX stock screen. The backtest assumed the screen bought and held for a year 30 stocks selected from the All TSX universe (the largest 95 percent of all TSX stocks by market … Read More

Is the CAPE Ratio providing a warning for investors – OFR

Johnny HopkinsResearch, StudyLeave a Comment

While no single tool, ratio or source should be used to evaluate the economy and its financial stability. The Office of Financial Research (OFR) provides a free bi-annual report, and a really cool heat-map, on their version of what’s happening in the economy. Its called the Financial Stability Monitor, here’s their latest report and here’s their really cool heat-map. “This … Read More

Minimizing Your Downside Risk – Ty Cobb Batted .367 Cos He Got On Base!

Johnny HopkinsJoel Greenblatt, Research, Resources, Study3 Comments

(Image Credit: http://www.outsidepitchmlb.com/) Like baseball, investing is more about safe hits that’ll get you on base rather than hitting home runs. The importance of calculating down-side risk rather than upside gains is one of the most overlooked concepts in stock market investing. Of course Warren Buffett is often quoted as saying, “Rule No.1 is never lose money. Rule No.2 is never forget … Read More

Hang out with losers if you want outstanding results in the stock market

Johnny HopkinsResearch, Resources, StudyLeave a Comment

(Image, Do You Have a Friend Who is a Loser? Get Rid of Em!, accessed 18 July 2016, http://persuasive.net/) Let’s face it, no-one wants to hang out with losers. But when its comes to investing, these are the exactly the types of stocks most likely to provide outstanding returns. The problem is there’s one undeniable fact in stock market investing and that … Read More

The Magic of Compounding Returns, The Tyranny of Compounding Costs – John Bogle

Johnny HopkinsJohn Bogle, Research, Resources, Study3 Comments

(Image, John Bogle on the Rise of Index Funds, accessed 16 July 2016, http://www.barrons.com/) Have you ever looked at the statement you receive from your investment manager and wondered, what the heck are they talking about! You think you’re getting good returns but it turns out you’re underperforming. The question is, WHY? One reason that investors continue to underperform is provided by a … Read More

Beating the Market | 16 Rules by Walter Schloss, plus 3 more

Johnny HopkinsResearch, Resources, Study, Walter J. Schloss1 Comment

(Image: The Walter Schloss approach to value investing, accessed 14 July 2016, http://vintagevalueinvesting.com/) The good news is that there’s thousands of websites that provide great information for new investors in the stock market. The bad news is that there are thousands more not providing such great information. If you’re new to stock market investing, here’s three important rules to start with:

Value Investing | Danny DeVito (Video)

Johnny HopkinsStudy4 Comments

(Video. Danny DeVito Explaining Value Investing — Benjamin Graham Style (Other People’s Money), accessed Youtube 13 July 2016, https://www.youtube.com/) Bit of humor today. Its aged a little, but here’s a great 3 minute video from the 1991 movie, Other People’s Money. Danny DeVito explains the timeless concept of value investing succinctly.

So you want to be a stock market investor? Take this test first!

Johnny HopkinsMichael Mauboussin, Research, Study1 Comment

(PHOTO: Source, www.michaelmauboussin.com) One of the great things about being a stock market investor in the year 2016, is that we have the internet. That means we have access to loads of free information to help us become better investors. There’s lots of great research that tells us why we continue to underachieve in the stock market. One of my favorite … Read More

Overriding emotional investing by Klarman, Munger and Buffett

Johnny HopkinsSeth Klarman, Study1 Comment

(PHOTO: Source http://www.talkativeman.com/seth-klarmans-recommended-books-on-investing/) Recently I wrote an article on investing and Behavioral Finance. Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions. The article is called, The biggest problem in share investing, is you! It demonstrates how human beings make terrible decisions … Read More

New Series – Contemporary Investing Gurus

Johnny HopkinsResearch, Resources, Study2 Comments

Today, I’m starting a new series here at The Acquirer’s Multiple called Contemporary Investing Gurus. Over the past few years I’ve spent a lot of time reading articles, watching videos and listening to podcasts from some of the best investing minds in the world. Names like Joel Greenblatt, Mohnish Pabrai, Warren Buffett, Charlie Munger, Meb Faber, and Guy Spier, just to name a few.

1. We hand-pick the 90 Best Deep Value Stock Picks

Tobias CarlisleStudy8 Comments

The Acquirer’s Multiple screeners examine the universe of US-listed stocks and ADRs to find the cheapest on the acquirer’s multiple, the name for the metric used by activists, private equity firms and corporate raiders to find deeply undervalued targets. How are the universes defined? At January 1, 2015, there were 9,254 stocks traded in the US. We exclude stocks traded over-the-counter (OTC … Read More

Johnny’s Real-Life Acquirers Multiple Portfolio – Update

Johnny HopkinsStudy8 Comments

OK, a few people have asked me what’s happening with my monthly updates for ‘Johnny’s Real-Life Acquirers Multiple Portfolio’ (AM Portfolio). For those of you that are unaware, I constructed my own AM Portfolio, using my own savings, here at The Acquirer’s Multiple starting in December of 2015. You can read all about it here:

The biggest problem in share investing, is you!

Johnny HopkinsStudy1 Comment

Huh! I don’t mean you as an individual, but you as a human being, when it comes to investing in shares. I’ve just finished reading a whole bunch of research from various sources which clearly show that human beings make terrible decisions when it comes to investing in shares. I always remember a story that Tobias Carlisle, founder of this … Read More

The Acquirer’s Multiple® Strategy Survey

Tobias CarlisleStudyLeave a Comment

The Acquirer’s Multiple® is the value ratio “acquirers”—buyout firms, activists, deep value investors—use to find undervalued stocks. As Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations shows undervalued companies trading on a low acquirer’s multiple tend to be good targets for investment. We Need Your Help We’d like to offer a hedge fund-like deep value strategy in a liquid, low … Read More

How can individual investors beat institutional investors

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I know what you’re thinking! How can one retail investor sitting at home with a laptop and an online brokerage account possibly get better returns than a institutional investor? To answer this question, we first need to understand what an institutional investor is. An institutional investor is an organisation whose primary purpose is to invest its own assets or those … Read More

Is Home Bias Hurting Your Portfolio?

Johnny HopkinsStudy2 Comments

One of the things that stops some investors from using The Acquirer’s Multiple investment strategy is that they’re based outside of the United States and are unsure about investment in the US shares provided by the ‘screens’ on this website. Like you, I’m not based in the United States. I’m based in Melbourne, Australia, but I do use The Acquirer’s … Read More

Here’s why I prefer The Acquirer’s Multiple over The Discounted Cash Flow Model, for valuation

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People often ask me why I use the mechanical method of investing provided by The Acquirer’s Multiple versus The Discounted Cash Flow Model. The answer can be found in this excerpt from the book, Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations, written by the founder of this website, Tobias Carlisle. “Shortly after Graham published Security … Read More

2. Deep Value Investing Returns (Acquirer’s Multiple) – January 2, 1999 to November 29, 2017

Tobias CarlisleStudy28 Comments

Updated November 29, 2017 Since the last update in July 26, 2016, the screens have had mixed performance. The Large Cap Screen had a strong finish to end the 2016 year up 27.4 percent, handily beating out the Russell 1000’s 15.1 percent by 12.3 percent. 2017 to date has seen continued strength in the Large Cap Screener. For the year, the Large … Read More