TIP775: Why Your Valuation Metrics Might Be Lying to You w/ Kyle Grieve
We Study Billionaires - The Investor’s Podcast Network
Reassessing Money-Losing Companies
Kyle explores Mauboussin's view that some GAAP losers invest in intangibles and can become great long-term wins.
Kyle Grieve breaks down Michael Mauboussin’s key insights on combating noise, valuing intangible-rich businesses, using the rule of 40, leveraging checklists and algorithms, understanding base rates, and more.
IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:03:00 - How to use the BIN acronym to help you deal with forecasting error
00:14:32 - Four myths in investing (many of which I’ve fallen for)
00:26:15 - Why you must take GAAP numbers on a case-by-case basis due to handicaps of the standard
00:25:07 - How the rise in passive investing is making active investing more challenging
00:33:19 - Why GAAP losers outperform GAAP winners
00:37:14 - Why you should understand the differences between pricing and valuing a business
00:48:39 - Why using assorted multiples will help identify true undervaluations
00:45:50 - How to utilize the rule of 40 in your investing regardless of whether you invest in tech or not
00:49:16 - What to know about the base rates of a public business’s survival
00:58:00 - Why most investments will fail and how to deal with the ones that succeed
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Read The Consilient Observer here.
- Learn about the BIN framework here.
- Dive into the four myths here.
- Explore valuation multiples more here
- Understand total shareholder returns more here.
- Improve your views on business survival here.
- Follow Kyle on Twitter and LinkedIn.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
NEW TO THE SHOW?
- Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
- Check out our We Study Billionaires Starter Packs.
- Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
- Browse through all our episodes (complete with transcripts) here.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
- Enjoy exclusive perks from our favorite Apps and Services.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS Support our free podcast by supporting our sponsors:
- Simple Mining
- Human Rights Foundation
- Unchained
- HardBlock
- Linkedin Talent Solutions
- Alexa+
- Vanta
- Amazon Ads
- reMarkable
- Shopify
- Onramp
- Abundant Mines
- Horizon
• Public.com - see the full disclaimer here.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
The AI-powered Podcast Player
