Is There a Factor Investing Strategy?

There's really no agreed upon formula for any of the factors. The influence of factors is very powerful because of the expression of those factors through various hedge funds and ETFs. So that a way to approach a factor investment is just to understand how the factors work and then get enough diversification so that what you're expressing in your portfolio.

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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

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Tobias Carlisle’s book The Acquirer’s Multiple.
Tobias Carlisle’s book Deep Value.
Tobias Carlisle’s book Quantitative Value.
The Acquirer’s Podcast.
The Acquirer’s Multiple.
The Acquirer’s Fund.
Related Episode: Deep Value Investing W/ Tobias Carlisle - MI025.
Related Episode: Warren Buffett, Charlie Munger, And Berkshire Hathaway W/ Adam Mead - MI084.

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