Deep Value Investing Using The Acquirer’s Multiple Revisited w/ Tobias Carlisle AZ TRT S05 EP 39 (255) 10-6-2024     What We Learned This Week Acquirers Multiple – Enterprise value of the business, mindset of buying the entire business Deep Value Investing – good companies at wonderful prices, looking for companies that are beat down, but not going out of business, will rebound, mean reversion Activist Investors – like Carl Icahn, act as catalyst to push mgmt to unlock value – stock buybacks, spin offs, etc. Value Trap – buy a cheap company (stock) that just keeps going down, but still looks cheap     Guest: Tobias Carlisle – Founder of Acquirers Fund and author of Acquirers Multiple book & blog Website: https://acquirersmultiple.com/   /  https://acquirersfunds.com/ LinkedIn: https://www.linkedin.com/in/tobycarlisle Twitter: https://twitter.com/acquirersx         Investing is broken down with Toby's philosophy on 'Deep Value', the Acquirers Multiple (purchasing the whole company), and value investing from Graham to Buffett. Tobias Carlisle is the founder of The Acquirer’s Multiple®. He is also the founder of 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), and other books. He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law.     He runs the Acquirers Fund, a Long / Short Fund (ticker symbol – ZIG). 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).     Notes:   Deep Value – what drives returns in investing, picking stocks is half the battle Concentrated Investing – interviews with fund managers Acquirers Multiple – summary of previous books, giving the best lessons Built Models to back test investing styles and value investing techniques    Warren Buffet is looking for Wonderful Companies at Fair Prices vs a Good Company at a Wonderful price (Deep Value)   Not a great business, but still a good business, that is being priced like it is going out of business. The market will realize this later, as it rebounds and grows slowly over time.   Contrarian’s contrarian like Carl Icahn   Value Trap – buy a cheap company (stock) that just keeps going down, but still looks cheap Corporate Raider or LBO (Leverage Buyout) Activist Investor or Shareholder Activism – forces management to make changes and unlock that value Solutions - Buy back stock, sell assets, spin off a division   Value Investor has to be patient, can take years for the market is too realize the value   Lots of cash $ on the balance sheet, low debt, and business is generating free cash flow Cash Flow is the life blood of a business, without it the business runs out of options   Buffet was a Liquidator in his early days, buy the company and liquidate the assets to make a profit, but decided to change his strategy because of pushback from company employees   Acquirers Multiple: think like an Acquirer (like Private Equity), buying the whole business or the Enterprise Value - what is