Dan Rasmussen, founder and CIO of Verdad Advisers joins the Infinite Loops podcast and discusses Bubbles vs. Crises Investing in Emerging Markets Identifying when “value investing” works, and when it doesn’t.
In this book, financial analyst Jeremy Miller summarizes Warren Buffett’s letters to his partners in Buffett Partnership Ltd. (BPL). The letters were written during the 1950s and 1960s and were before the Berkshire Hathaway era. It was the time in Buffett’s career when he managed the least amount of capital and was able to use all the tools he learned from Benjamin Graham.
A Brief can be read here.
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.