Understanding Market Psychology and Value Investing

This chapter explores the psychology of investing, revealing how market sentiment can lead to poor decision-making among investors. It emphasizes the significance of value investing strategies, illustrated through examples like Zoom, and discusses the informative Shiller PE ratio as an indicator of market conditions. Additionally, it encourages a focus on undervalued stocks and offers methodologies for evaluating company performance, highlighting the potential benefits of dividends in today's low-interest-rate environment.

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Clay Finck chats with Tobias Carlisle about what led him to becoming a value investor, what mean reversion is and how it relates to his overall investment strategy, how inflation impacts his investment process, what the shiller PE is and why it’s something to be mindful of, what his thoughts are on determining an appropriate discount rate, and much, much more!

Tobias Carlisle is the founder of The Acquirer’s Multiple®. He is also the founder of Acquirers Funds® which manages ZIG, the Acquirers Fund, and DEEP, the Roundhill Acquirers Deep Value Fund.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:00 - How Tobias ended up becoming a value investor.

07:43 - What investors had a big impact on Tobias’s own development?

12:02 - What mean reversion is from an investment standpoint, and how it relates to his overall investment strategy.

21:44 - What the shiller PE is, and why it is something to be mindful of.

32:20 - How inflation impacts his overall thought process for stock investing.

44:03 - Tobias’s thoughts on an appropriate discount rate, and what discount rate Warren Buffett might be using in his valuation process.

47:19 - The two funds the Acquirer’s Fund manages - ZIG and DEEP.

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.
Bruce Greenwald’s book Value Investing.
Benjamin Graham’s book, The Intelligent Investor.
The Acquirer’s Podcast.
The Acquirer’s Multiple.
The Acquirer’s Fund.
Related Episode: Listen to MI025: Deep Value Investing w/ Tobias Carlisle, or watch the video.
Related Episode: MI084: Warren Buffett, Charlie Munger, And Berkshire Hathaway w/ Adam Mead, or watch the video.
Check out the books mentioned in the podcast here.
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