Here’s a great excerpt from Michael Burry’s Scion Capital 2001 Shareholder Letter in which he illustrates how investors can make 7x plus on their investment by valuing the entire business, not just the stock price: An Illustrative Situation The repercussions of the late 1990’s asset bubble continued to resonate through … Read More
Bill Nygren: Value Investors Need To Adapt Their Business Valuation Strategies
In The Oakmark Funds’ latest Q218 market commentary Bill Nygren says that value investors need to adapt their value investing strategies for today’s companies because book value is no longer a definitive indicator of economic value: “For companies in the S&P 500 today, the correlation between stock price and tangible … Read More
Aswath Damodaran: 10 Rules For Analyzing Investments and Assessing Value
One of our favorite investing books here at The Acquirer’s Multiple is The Little Book of Valuation, by Aswath Damodaran. There’s a great passage in the book in which he discusses the importance of being able to value stocks before buying them: “Oscar Wilde defined a cynic as one who … Read More