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 … Read More
Is the CAPE Ratio providing a warning for investors – OFR
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 … Read More
Minimizing Your Downside Risk – Ty Cobb Batted .367 Cos He Got On Base!
(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 … Read More
Hang out with losers if you want outstanding results in the stock market
(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 … Read More
The Magic of Compounding Returns, The Tyranny of Compounding Costs – John Bogle
(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? … Read More
Beating the Market | 16 Rules by Walter Schloss, plus 3 more
(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 … Read More
Value Investing | Danny DeVito (Video)
(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. [youtube … Read More
So you want to be a stock market investor? Take this test first!
(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 … Read More
Diversified Portfolio | Insure your car, your house, your life, and your portfolio
If you’re like me, you insure your car, your house, and your life. Visit lifecoverquotes.org.uk to find out everything you need to know about getting life insurance when you’re over 40 and why you should consider taking out a policy. The reason I insure my house is because if it … Read More
To outperform in the stock market you will underperform
(PHOTO: Source http://changzw.com/) Part of being a value investor is understanding that your portfolio will underperform some of the time. I recently read an article on this very topic where Mohnish Pabrai was asked a question regarding investors following his Dhandho Investor strategy:
Overriding emotional investing by Klarman, Munger and Buffett
(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 … Read More
New Series – Contemporary Investing Gurus
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, … Read More
1. We pick the 90 Best Deep Value Stock Picks
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? We exclude stocks traded over-the-counter (OTC stocks), … Read More
Johnny’s Real-Life Acquirers Multiple Portfolio – Update
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 … Read More
The biggest problem in share investing, is you!
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 … Read More
The Acquirer’s Multiple® Strategy Survey
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 … Read More
How can individual investors beat institutional investors
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 … Read More
Is Home Bias Hurting Your Portfolio?
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 … Read More
Here’s why I prefer The Acquirer’s Multiple over The Discounted Cash Flow Model, for valuation
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 … Read More
2. Deep Value Investing Returns (Acquirer’s Multiple) – January 2, 1999 to November 29, 2017
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 … Read More