I want to dive into this, the reasons behind this outperformance because one thing that you outline in the book is mean reversion. That's a big topic and theme throughout your book. And I think it's kind of under appreciated in investing sometimes and it ties into the reasons behind your performance. Mean reversion is a funny beast and it manifests in lots of different ways. But there's a mean reversion where with parents that have some unusual features, I see two tall parents. It's not the case that their child tends to be taller than them. What happens instead is that people who are very tall may have just had an accident of getting several very tall genes all together or they
IN THIS EPISODE, YOU’LL LEARN:
02:52 - Breaking down Warren Buffett’s strategy of “buying down wonderful companies at a fair price.”
02:52 - What the Acquirer's Multiple Investing strategy is.
08:35 - Why enterprise value is more useful than market cap to value stocks.
08:35 -The benefits of the Acquirer's multiple strategy vs Warren Buffett value investing strategy.
16:42 - How mean reversion works, what companies and financial metrics typically exhibit mean reversion.
29:28 - Why a competitive advantage is key for a company to sustain a high ROIC.
40:55 - What are things that investors mistake as being moats or sustainable advantages?
50:58 - How to implement this strategy and use the Acquirer's multiple stock screener.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
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