Value After Hours S06 E11: John Rotonti Jr on best value firm processes and valuing buybacks
Mar 27, 2024
auto_awesome
John Rittante Jr. discusses value firm processes, buyback valuation, Royalty companies, Bitcoin challenges, and ecosystem impacts of invasive ants on lion hunting behavior. Insights on private equity, high-growth company valuation, and home construction market dynamics are also explored.
Effective selling in unexpected situations is crucial for portfolio stability.
Investors shifting towards cash flow-focused strategies over market re-rating models.
Private equity faces challenges with declining deal and exit values, impacting future valuations.
Deep dives
Insights on the J-ROW Show Podcast: Deep Dive into Investment Portfolio Managers and Their Processes
The J-ROW Show podcast features discussions with portfolio managers from reputed investment management firms, focusing on their research processes and day-to-day activities. While avoiding stock tips, the emphasis is on understanding the research, analysis, and expectations in the investment industry, common procedures like financial modeling and the importance of detailed processes.
Lessons on Quick Decision Making and Portfolio Management Strategies
Experienced investors highlighted the importance of selling quickly when facing unexpected circumstances to avoid risks and preserve portfolio stability. Notably, renowned investors like Julian Robertson and Bill Miller have advocated for this approach in managing investments.
Shifting Strategies in Value Investing in Response to Market Changes
Notable figures like David Einhorn have adapted their investment strategies, moving from traditional value investing models that rely on market re-rating to focusing on investments generating current cash flow and returns. The shift reflects a skepticism toward market valuation mechanisms in a changing investment landscape.
Navigating Risks and Market Volatility in Private Equity
Recent insights on the private equity industry reveal challenges with deal values and exit values declining. Concerns arise over the sustainability of returns, especially in the face of rising borrowing costs and increased competition, leading to questions about future valuations and investment opportunities in private equity.
Strategic Stock Buybacks and Industry Dynamics in the Construction Sector
Builders First Source exemplifies strategic buybacks and value-added services contributing to financial success. Riding a wave of new home construction demand and innovative business models, the company positions itself for long-term growth, capitalizing on industry disruptions and supply-demand imbalances.
Evaluating AI Investment Trends and Longevity in the Market
The discussion touches on the current AI investment boom, comparing it to historical tech bubbles like Cisco in the early 2000s. While acknowledging the excitement, there's a consideration of the AI market's sustainability and potential for long-term growth amid market dynamics and historical trends.
Value: After Hours is a podcast about value investing, Fintwit, and all things finance and investment by investors Tobias Carlisle, and Jake Taylor. See our latest episodes at https://acquirersmultiple.com/podcast
We are live every Tuesday at 1.30pm E / 10.30am P.
About Jake
Jake's Twitter: https://twitter.com/farnamjake1
Jake's book: The Rebel Allocator https://amzn.to/2sgip3l
ABOUT THE PODCAST
Hi, I'm Tobias Carlisle. I launched The Acquirers Podcast to discuss the process of finding undervalued stocks, deep value investing, hedge funds, activism, buyouts, and special situations.
We uncover the tactics and strategies for finding good investments, managing risk, dealing with bad luck, and maximizing success.
SEE LATEST EPISODES
https://acquirersmultiple.com/podcast/
SEE OUR FREE DEEP VALUE STOCK SCREENER
https://acquirersmultiple.com/screener/
FOLLOW TOBIAS
Website: https://acquirersmultiple.com/
Firm: https://acquirersfunds.com/
Twitter: https://twitter.com/Greenbackd
LinkedIn: https://www.linkedin.com/in/tobycarlisle
Facebook: https://www.facebook.com/tobiascarlisle
Instagram: https://www.instagram.com/tobias_carlisle
ABOUT TOBIAS CARLISLE
Tobias Carlisle is the founder of The Acquirer’s Multiple®, and Acquirers Funds®.
He is best known as the author of the #1 new release in Amazon’s Business and Finance The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market, the Amazon best-sellers Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014) (https://amzn.to/2VwvAGF), Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012) (https://amzn.to/2SDDxrN), and Concentrated Investing: Strategies of the World’s Greatest Concentrated Value Investors (2016) (https://amzn.to/2SEEjVn). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law.
Prior to founding the forerunner to Acquirers Funds in 2010, Tobias was an analyst at an activist hedge fund, general counsel of a company listed on the Australian Stock Exchange, and a corporate advisory lawyer. As a lawyer specializing in mergers and acquisitions he has advised on transactions across a variety of industries in the United States, the United Kingdom, China, Australia, Singapore, Bermuda, Papua New Guinea, New Zealand, and Guam.
He is a graduate of the University of Queensland in Australia with degrees in Law (2001) and Business (Management) (1999).
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode