4min chapter

Superinvestors and the Art of Worldly Wisdom cover image

#16: Tobias Carlisle on Beating 'The Little Book That Beats The Market'

Superinvestors and the Art of Worldly Wisdom

CHAPTER

The Acquires Multiple

The Acquires Multiple is a simple way of looking at what a company earns and comparing it to what you're actually paying if you would have buy the whole thing. So for many, many companies, they carry a lot of debt. If you start thinking about it in those terms, you do find companies that have no debt or you have find companies with lots of cash on their balance sheet who are even cheaper than they look.

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