The Magic Formula vs. The Acquirer's Multiple | Joel Greenblatt vs. Tobias Carlisle
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- Опубликовано: 6 авг 2020
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The battle of the quants! These are both great reads, so definitely check them out if you’re interested.
Enjoy :)
Disclaimer:
I am not a financial adviser. This video is for education and entertainment purposes only. Seek professional help before making any investment decision
You're one of the first, if not the FIRST, RUclipsr I've heard mention Enterprise Value as an important valuation measure. More important than 'market cap' in fact. I started following you the first time I heard you mention it. While it may not be popular today, focusing on enterprise value will serve you very well long term in your investments. I for one am staying the course, as I'm sure you are too.
Thanks for the great book review Tom. I've long been a fan of Greenblatt, his books part of my permanent investment library, but for whatever reason have never read Carlisle's 'The Acquirer's Multiple'. I've already added to my Amazon cart. Cheers...
It’s not a super common term for whatever reason, but glad to hear you’ve picked it up too
Investing with Tom here in india it’s quite popular.
@@InvestingwithTom Thanks for the video. So it sounds like yourself do not invest based on magic formula or the acquirer ‘s multiples. Is that right? Also is the acquirer multiple for the US market or is it for the Australian market only?
As a novice investor, If you can make a video on how to calculate both of those formulas using info on Yahoo finance, that would be awesome. I find it a tad confusing finding info there. Although there's a screening website for those stocks, I'd like to learn to screen companies myself.
These guys are two of my favourite investors. Joel Greenblatt is superior in his experience and had one of the best runs in history. Tobias is yet to have his time imo, betting on the deep value comeback. I'm currently going through Greenblatt's class notes which are fantastic. Thoroughly enjoy Carlisle's podcast too.
Good review, loved both books. Love how Tobias has an ETF now, way easier then doing the magic formula manually.
You just got a subscriber... Very good video. Always keep it crisp to the point like this. Thanks a ton.
All your book recommendations has been great Tom. Will read these ones too. Cheers
Great video Tom I’ve been waiting for the Tobias Carlisle content! Both great reads and I consider both strategies in my investments.
I enjoyed reading them both!
you explain things so well, thank you!
Another great Video mate, always appreciate a good read :) keep em coming!
Thanks for sharing... Sure will buy both of them next month....
Does anyone know how to see the historical companies chosen by the magic formula? (Not the just the most recent quarter on the website). It would be very helpful for my research.
Great video. Thanks!
The titans!
Tobias would be an old school Graham. Very well read across the investing literature but engaged from a business perspective too.
Thanks for the video, Tom. Loved it!!!
Appreciate it! Thanks for watching
Good summary Tom of a couple of my favorite books / authors / investors. I also recommend these books. Even though the S&P500 is almost at all time highs again I think there is still good opportunities for investors applying some of the theories behind these books.
Great video Tom. Any under valued on any Nz or Oz stocks? Why is the Nz stock exchange so flat? Will a Ardern victory be good for investors?
So, by acquirer formula the lower the number the better? (EV/ EBITDA )
Thanks for the great overview of these two books. The Magic Formula is a buy then sell (around a year later) method. Is the Acquirer's Multiple also buy and sell - or is it a buy and hold indefinitely strategy? And do you know of any other buy and hold strategies that do well where picking individual stocks are concerned?
Great video mate, I have not read either book, but they are going on list.
Glad to hear!
Thanks for discussing this. Never really looked deep into The Magic Formula or The Acquirers Multiple. I will definitely look into it. Thanks for the video!
Nice accessible review
Thanks
Hi Tom. Analysing companies can take a lot of time including using Phil Towns technique tho I must say Im still working on his premise and trying to effectively learn it. Would you say using Tobias' method is better and quicker?
First things I put into my spread market cap, shares outstanding, cash, net debt, Enterprise value and Free cash flow all very important
Absolutely
Tom, I recently finished both books per you recommendation. I really liked them, and appreciated the order you recommended reading them. Could you please do a video on West Fraser Timber (WFG)? It is the company at the top of the list for the Acquirers Multiple.
Good work mate, good summary of the books. I'm a finviz screen guy myself. Do you know anyone/any book that is looking at Net Net working capital companies?
Awesome video Tom! Apple was also a top 30 magic formula stock not that long ago. I just downloaded The Acquirer's Multiple on Audible. Will you be setting up a test account to compare the results of these two quantitative approaches?
I haven’t set one up, no. Have you? Would be nice if Apple turned up in the again, but I think it’s probably miles away from making the screens now!
The Acquirer's podcast is so good. It's funny, every time I look at who is holding shares of companies I am analyzing in gurufocus, I see Joel Greenblatt scooping them up. He seems to play the market like a game of Monopoly.
He does own a lot of stocks!
I am wondering what happens if we get an acquirer's multiple that is negative? Do we just remove these from our screen? Sometimes operating income is negative where the company does not turn a profit.
Bit delayed, but this is fascinating, hope it's working out ok right now for you all 🤔
Does Joel Greenblatt actually go into detail about why he specifically picks earnings yield and ROIC for his Magic Formula? Basically, is it worth buying the book when I've watched this video?
You rock🤘
Value investing works but when the overall Market is expensive, that usually means the value stocks are likely not a value either.
When will we see the powerlifting with Tom channel?
It’s out there if you can find it! Haha
@@InvestingwithTom I think I found ya. Haha
Lorena Costa 👀
Reading the comments I feel like I need to have investor/invest in my RUclips name somehow
Neither method has even matched the S&P500 since about 2010.
I thought it was EV/EBIT
Yep, me too. Do you know why he changed to EV/Ebitda from original Magic Formula?
@@Parcian- no why
Mental Models:
1.
“NetROCI (ROIC) & Net Income Growth are the Left and Right feet empowering each other in moving the Intrinsic Compounding.”
~ Total Reset ~
2.
“Dharmic Trīni-Karmāni Value Investing：达摩三业价值投资
意：The Voliation of the Stock Market is NetROCI.
话：The Speech of the Stock Market is Net Income Growth.
作：The Deed of the Stock Market is Intrinsic Compounding & Dividend Compounding.”
~ Total Reset ~