A lot of these companies, they were above market average for return on invested capital. It just makes me wonder if those are an example where now we're in the mean reversion cycle. I think that the secret is survival. If you survived through a period of time, then the upside tends to take care of itself. In every single business that I look at, there are intellers, another one. But there may be a generation behind all the other chips that are out there and they may never catch up. So that might be fatal for Intel.
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.
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