Activist investing

Books

Return to Go | Jim Slater


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Jim Slater was the British financier who in the 1960s introduced hostile takeovers in London, two decades before Icahn and Pickens were to ravage Wall Street. Through hundreds of acquisitions between 1964 and 1973, his platform Slater Walker (SW) grew from a market capitalization of £1.5m to over £225m. But the great stock market crash of 1973–1975, in combination with overly aggressive leverage, was the end of the success story.

A brief on the book Return to Go can be read here.

Books

The Acquirer’s Multiple | Tobias Carlisle


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The book is about how investors like Warren Buffett and Carl Icahn have successfully used the phenomenon of “mean reversion” and how an investor with a deep value strategy can systematically use it. “The Acquirers Multiple” (AM) is the EV/EBIT multiple. Carlisle got the idea for AM when he backtested Joel Greenblatt’s “The Magic Formula” (which uses EV/EBIT and EBIT/IC to sort out “wonderful companies at fair prices” and found that the use of EV/EBIT alone outperformed “The Magic Formula”.

A Brief of the book can be read here.