In this week’s Excess Returns, we are trying something new. In addition to our regular episodes, we have decided to periodically talk to some of the people we respect most in the investment community to get their insights on the issues facing investors today. For our first conversation, we talk to our friend Tobias Carlisle about value investing. Toby is probably the smartest value investor we know. He is the author of four books on… Read More
In a recent interview with Bloomberg TV, deep value investor Tobias Carlisle explained his macro approach as well as the strategy behind his firm’s ETF. Carlisle, founder and portfolio manager at Acquirers Funds, explained that he seeks “strong businesses that are throwing off cash and buying back stock, very traditional long side for value.” His preferred metric in evaluating companies, he explained, is one that he created himself and calls the “acquirer’s multiple” which is… Read More
This is Part II of my interview with Tobias Carlisle of the Acquirer’s funds, which just released its first ETF, the Acquirer’s ETF (ZIG) earlier this year. In Part I, we talked about some of the arguments against value investing and how they can be refuted. You can read that here. In Part II, we talk more about the intricacies of building a value portfolio. As a reminder, this interview was taken from a phone… Read More
As those who read my articles know, I am a big believer in value investing. But I also understand that as a follower of value, I am prone to focusing on information that supports that belief. A while back, I tried to combat my own confirmation bias by writing an article that looked at the arguments against value investing. That article ended up being the most read article of all time on our blog. So… Read More
Last week Validea Partner Justin Carbonneau was interviewed by Tobias Carlisle on the Acquirer’s Multiple Podcast. Toby and Justin discuss Validea and our approach to investing, as well as a bunch of other investing related topics. Below is an outline of the discussion and a link to the video. How Validea capture’s quantitative models and what we do with them; How we actually implement these strategies in the real world; The underperformance of value stocks,… Read More
By Justin J. Carbonneau (@jjcarbonneau) — In 2005, Joel Greenblatt, a successful hedge fund manager, published an incredibly simple book on disciplined value investing. The book, The Little Book that Beats the Market, went on to be a best seller. In the book, Greenblatt developed a method that sought to combine Ben Graham’s deep value stock selection approach with that of Warren Buffett, who is mostly known for buying high quality and profitable companies at… Read More
By Jack M. Forehand (@practicalquant) — With so many great investing podcasts out there, it can be difficult to identify the best ones. Through our new Podcasts of the Week segment, I will try to help filter out the most interesting episodes and identify the podcasts I learned the most from each week. In addition, we will also take a look at a great podcast from the past via the From the Archives section. Best… Read More
James O’Shaughnessy’s What Works on Wall Street is something of a bible for quantitative investors, and in a recent Investors Podcast, O’Shaughnessy talked about what his vast amount of research has taught him. O’Shaughnessy says it is critical to understand human nature if you want to succeed at investing. While his book detailed how dozens of quantitative strategies have worked over several decades, he says he wasn’t worried that disclosing the information would lead to… Read More
In an excellent recent interview with The Investors Podcast, quantitative guru Tobias Carlisle talks about the powerful force of mean reversion in the stock market and economy, and offers a number of insights about quantitative investment strategies.