The Acquirers Multiple Review | Tobias Carlisle Interview

We had the incredible honor of interviewing the author of The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market, Tobias Carlisle!
Check out our awesome Tobias Carlisle interview above!
Buy Tobias's book The Acquirer's Multiple here:
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Listen to his podcast here:
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(Interview took place on May 26, 2022)
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[@davidkoba]

You guys have the BEST interviews. Always high level people with substantial experience and research. I appreciate it.

[@davidkoba]

@Patrick Collins Hell no price>company

[@michaelswami]

It would be nice if they could get a word in.

[@robb5270]

Which is why it’s extremely confusing why smart people refuse to use their brain when it comes to tesla. First off the guy is wrong they don’t “bend” metal. Tesla literally invented the worlds largest stamps. Second to say they are just a car company and not a software company or AI company is so insane. They literally have some of the worlds best “software” and AI engineers. They work on projects like the human robot which they have a prototype that is clearly not a car. (The founder and CEO does falls all the time even as recent as last week where he explains this. Actually said they are a software company) Regardless of valuation and saying overvalued is one thing. But saying factually wrong info because you want to be…..I don’t know, stubborn? Ignorant? Unwilling to admit the tesla crow are right about anything? Like what is it? I like most of your stuff but this take with Tesla really ruins your reputation. It kind of shows you don’t follow facts and reality.

[@davidkoba]

@@robb5270 Tesla is grossly overvalued.

[@jamesl2502]

Huge fan of Toby. And JT and Bill Brewster for that matter. Glad to see him here

[@SolimanChess]

This interview was amazing, thank you guys for doing this.

[@JohnGrayFinance]

This was such a good interview guys. Absolute gem of an investor in Tobias. Him running a fund that isn't outperforming in a bull run says a lot about his dedication to his process.

[@StefanImkeVollebergHendrikx]

What a fantastic interview, kudos guys! Having read the book The Acquirer's Multiple, I still have one thing unclear about the investing according to the strategy: when to sell? Please note, I live in Europe and have no tax-reasons to buy/sell before/after a year. So, when to sell? Losers: sell losers whenever they are out of the screener, maybe at monthly or quarterly rebalancing moments, or keep every buy always at least a full year? Winners: when to sell winners which are not popping up the screener anymore? Rebalance profits every quarter or so, and sell them after being a year in the portfolio? Or keep them forever as long as they have green figures?

[@keenanmartens]

I have to nitpick with one point. March 2020 was still expensive for companies in the SP500. But there were countless deep value stocks that reach indefensibly low valuations. Just like David Einhorn said, “The market is currently extreme on both ends. The indexes have companies trading at valuation levels so high and so unprecedented, while we are holding other companies who have enough cash or cash flows to buy back all their stock within 1-5 years. Holdings like that have typically only been available during the bottoms of bear markets, not at the tops of a bull run.” The indexes are trading at sky high levels, but there are still companies available at crazy cheap levels.

[@robb5270]

Also It’s extremely confusing why smart people refuse to use their brain when it comes to tesla. First off the guy is wrong they don’t “bend” metal. Tesla literally invented the worlds largest stamps. Second to say they are just a car company and not a software company or AI company is so insane. They literally have some of the worlds best “software” and AI engineers. They work on projects like the human robot which they have a prototype that is clearly not a car. (The founder and CEO does falls all the time even as recent as last week where he explains this. Actually said they are a software company) Regardless of valuation and saying overvalued is one thing. But saying factually wrong info because you want to be…..I don’t know, stubborn? Ignorant? Unwilling to admit the tesla crow are right about anything? Like what is it? I like most of your stuff but this take with Tesla really ruins your reputation. It kind of shows you don’t follow facts and reality.

[@noeliosis3775]

Seriously great interview. Thanks Paul for breaking down what Tobias was speaking on. I feel like a lot of interviews just assume the audience understands what they're talking about or the interviewer doesn't know either.

[@HassanPoyo]

More interviews with big names please! Love these

[@fmalexander5555]

Money is gold n silver. ✨️

[@investclubbg]

Respect for this podcast guys! I am a huge fan of Mr. Carlisle. I am a deep rooted value investor and I have the biggest youtube channel in Bulgaria. I would love to make a podcast with you guys! :)

[@whatsapp-1365]

Thanks for watching Hit me up there ☝️☝️ There are profitable nods and patterns I'd love to show you🚀🚀 🚀🎉🎉.

[@EverythingMoney]

Hey ! Email us at [e-mail] and Nick will get you in touch with the guys , thanks for reaching .AP

[@investclubbg]

@@EverythingMoney Great I sent and email. :)

[@SlavElenkov]

Nice! I’m Bulgarian too, and I also follow Everything money and Tobi. You watch his weekly show on his channel? I enjoy it! Ziveia v America taka che po lesno na Angliiski =)

[@juanfernandez3633]

AWESOME job guys. I actually read this book about 2 years ago and keep it on my favorite shelf in my office. Its a cool fundamental way to take into account debt as oppose to market cap which does not. EV/EBIT. great interview.

[@jasonhutchens4420]

This videos reminds me of the quote. “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

[@chrismaloy]

Great interview. I'm a big fan of the Magic Formula - this was a new spin on that. Loved it. Thank you.

[@dougjackson9206]

Awesome interview thank you

[@yannotong4887]

Hi EM, still waiting for ASX (Australia Stock Exchange) to be added into the software. I have been with EM since February 2021 and still waiting for it.

[@EverythingMoney]

We know we are having issues with our provider , they cant give us 10+ yrs off data .AP

[@springb0ks]

I am wondering what happens if we get an acquirer's multiple that is negative? Do we just remove these from our screen? Sometimes operating income is negative where the company does not turn a profit.

[@rainleguarda3379]

Damnnnn! that was such a good interview! Thank you guys!

[@tomerd9141]

Just thank you for everything.

[@EverythingMoney]

Thanks for the support .AP

[@taylorIndependenceHall]

incredible podcast thank you so much

[@whatsapp-1365]

Thanks for watching Hit me up there ☝️☝️ There are profitable nods and patterns I'd love to show you🚀🚀 🚀🎉🎉.

[@EverythingMoney]

Our pleasure! AP

[@QuantCompounding]

Thanks guys! Excited for this one

[@whatsapp-1365]

Thanks for watching Hit me up there ☝️☝️ There are profitable nods and patterns I'd love to show you🚀🚀 🚀🎉🎉.

[@EverythingMoney]

Hope you like it! AP

[@aryanmaheshwari2613]

I consider probabilistic turnarounds to be deep value too. eg- GoPro, Quad Graphics (Quadracci has been a great capital allocator considering he's consolidated the entire printing industry along with giving dividends and maintaining a 50% debt capital ratio due to capital intensive nature of its legacy business)

[@cv0669]

great interview - I love these please do as many as you can

[@svadia]

Great choice for an interview.

[@whatsapp-1365]

Thanks for watching Hit me up there ☝️☝️ There are profitable nods and patterns I'd love to show you🚀🚀 🚀🎉🎉.

[@EverythingMoney]

Thanks for the feedback .AP

[@G1Martins]

Phenomenal interview guys

[@LV-ei1ce]

papa gabe thanks for explaining to us in lay man terms !!

[@EverythingMoney]

Any time! AP

[@drewshegda34]

Great interview. Bought the book while listening

[@chasevonnable]

Thank you EM .

[@whatsapp-1365]

Thanks for watching Hit me up there ☝️☝️ There are profitable nods and patterns I'd love to show you🚀🚀 🚀🎉🎉.

[@EverythingMoney]

Thank you too for supporting us .AP

[@byaku92]

Great interview! Just out of curiosity, I do not see Mo featured in any of your recent videos. Wondering why

[@geirroy]

Great interview. Would love it if you’d convert them into podcasts

[@TheRustyLM]

Hell yeah! Been looking forward to seeing this one!

[@EverythingMoney]

Hope you like it!AP

[@brettgreen9247]

I've read All of Greenblatt's books thoroughly. He said in the little blue book to use ROA as a proxy for ROIC in lieu of that being available on most brokerage screeners. When Tobias refers to Tesla, he says their value is purely based on ROA, which is basically a a proxy for ROIC , yet he also feels that ROIC is a harmful metric to catch companies at the top of their business cycle. A bit of mixed messaging, I'm thinking a bit more granular message would be to get in and out, swing or day trade when automotive companies like Tesla are hitting the top of their ROA. Also, Greenblatt has an ETF as well, GSPY for anyone that's interested.

[@archbpc]

Great interview, keep them coming, love hearing your discussions on investing.

[@gergelyvoros2717]

Tobias mentions the fact that they are holding Domino's. DPZ does not seem a net-net to me. Currently, it is trading at more than 22x times ev/ebitda. I do wonder how can you hold this stock without considering the qualitative aspects of the business? It just seems a bit of contradiction to me if you consider what Tobias has to say about ROIC and other measures of profitability.

[@johnl4235]

what are sharpe ratios?

[@soup100]

The Acquirers Fund ETF is very expensive. One of the most expensive ETFs I've ever seen. The high expense ratio basically kills whatever positive returns the strategy might bring. The only one making money here is Tobias.

[@EverythingMoney]

Thanks for sharing .AP

[@jasonlahey1550]

Totally agree with you. Thanks for saying it too. There’s just some about him I don’t like too.

[@soup100]

@@jasonlahey1550 I like Tobias. He walks the walk when it comes to value investing. I highly recommend his podcast. This is basically the shareholder yield strategy. Low pe, high free cash flow stocks. You can do this for much cheaper than Tobias's fund. COWZ or SYLD are better options.

[@ValueHurts]

0.89% for an actively managed fund? That’s not expensive.

[@soup100]

@@ValueHurts there are actively managed small cap and emerging markets etfs that charge between 0.25 - 0.50! Why is Tobias charging 0.89 to manage a domestic US large cap value etf? WTF?

[@dr.justovillela3742]

Que buena entrevista, la disfrute muchísimo !😊👌

[@SCHDSTAN]

Interesting stuff. Just got bought the book on audible.

[@ecosby100]

At 31m. I totally get what you guys are saying in regards to companies blowing smoke up are asses like all the ark companies

[@EverythingMoney]

Great job ! AP

[@davidwilson9976]

Great timing. If there is a recession, the Acquirer's Multiple fund is probably the place to be.

[@EverythingMoney]

Yea could be a great strategy .AP

[@andres.1335]

great interview guys

[@Reciprocation_of_goodwill]

Great video. Thanks.

[@711-v3k]

Running this as a pie, 17% ytd, cant argue with that eh?

[@EverythingMoney]

Great job .AP

[@bluegtturbo]

As soon as some new investors formula becomes widely used it becomes self defeating. Look at what happened with dogs of the Dow in the past ten years... And look what's happening with Carlyles Zig ETF based on the acquirer multiple.. It's just about back where it started in 2019, hence underperforming the S&P500 which is ahead 30 percent.

[@JohnGrayFinance]

You’re judging value ETFs on 3 years of performance at the edge of a bull market?

[@pinox1]

very good interview, thanks :)

[@marccappelli4414]

You know...I love & subscribe to your service...HOWEVER. when you have a quest of Tobias Carlisle's caliber he should be speaking 80 % + of the time....NOT Paul...that being said Paul's & the service are outstanding

[@marccappelli4414]

Very constructive observation Mr. Cappelli....

[@marccappelli4414]

Mr. Cappelli....you are the W. Buffet of KZbin video commentary

[@marccappelli4414]

LOL

[@JohnGrayFinance]

Considering this guy has his own podcast, I actually prefer the back and forth. There’s plenty of other places I can get a Tobias monologue.

[@rickpain5096]

OK so you try to avoid companys at the top of their Business cycle, therefore you omit roic or Roa. But EV/EBIT will equally be the lowest at the top of the Business cycle. So currently there Energy has a historically high roic but also a historically Low EV EBIT right?

[@MJHarris93]

Great interview, loved that he got technical - Seth please don't interrupt to just to dumb it down, if guests are getting down in the details, it's awesome to hear exactly how these great investors think!

[@gergelyovics]

Listening to people, make me smarter not when I talk.

[@userjoe4321]

Great chat 👍

[@WasteSecond]

15:45

[@brunopimenta8204]

22:40 Turns out the sky isn't blue, the sky is actually black, it's the sun's light waves refracting in the earth's atmosphere that make it appear blue.

[@Bruce-ms1yy]

....second watch....yes...already

[@EverythingMoney]

Wow thanks ! AP

[@ukaszk3162]

Love the interview Guys - one of the best so far !

[@michaelswami]

This is a sincere and well intentioned comment. Paul, we know what you know and what you think. We’d really like to know what the interviewee thinks. If you can’t resist the temptation to jump in and give your take, maybe let Seth carry the freight and you stay upstairs.

[@robb5270]

Also it’s extremely confusing why smart people refuse to use their brain when it comes to tesla. First off the guy is wrong they don’t “bend” metal. Tesla literally invented the worlds largest stamps. Second to say they are just a car company and not a software company or AI company is so insane. They literally have some of the worlds best “software” and AI engineers. They work on projects like the human robot which they have a prototype that is clearly not a car. (The founder and CEO does falls all the time even as recent as last week where he explains this. Actually said they are a software company) Regardless of valuation and saying overvalued is one thing. But saying factually wrong info because you want to be…..I don’t know, stubborn? Ignorant? Unwilling to admit the tesla crow are right about anything? Like what is it? I like most of your stuff but this take with Tesla really ruins your reputation. It kind of shows you don’t follow facts and reality.

[@cajungames]

@@robb5270 even though tesla made all this great stuff than they should sell it to become a software company..... right now they make profit by selling cars. That is how they judge tesla.

[@michaelswami]

@@cajungames I’m pretty sure they make much of their money selling carbon credits to non-compliant companies. Haven’t looked at a recent financial though, because I have no interest in them.

[@stockjock1222]

Buffett made huge returns on horrible companies with terrible management like Dempster Mill and Sanborn Map because they were still greatly undervalued. Although, he had to be make changes in the companies to unlock their value

[@bigboybernie9669]

Damn Tobi really switched up on Jake and Bill

[@josephmcortez]

got note pad out and mind open.

[@EverythingMoney]

Beautiful .AP

[@armazen.jiujitsu]

Seth should speak more

[@oukastoukast]

Hello!

[@whatsapp-1365]

Thanks for watching Hit me up there ☝️☝️ There are profitable nods and patterns I'd love to show you🚀🚀 🚀🎉🎉.

[@EverythingMoney]

Hey ! Enjoy .AP

[@Manu_Money]

Hes system is alot better than magicformula system in my experince :D

[@ds9311]

Monish basically stated too hard to assess

[@LV-ei1ce]

Yo could have split this into 4 videos with some titles.

[@whatsapp-1365]

Thanks for watching Hit me up there ☝️☝️ There are profitable nods and patterns I'd love to show you🚀🚀 🚀🎉🎉.

[@EverythingMoney]

Thanks we know , but we decided to do it like this .AP

[@aaront936]

First

[@EverythingMoney]

Nice, Enjoy the vid .AP

[@robb5270]

It’s extremely confusing why smart people refuse to use their brain when it comes to tesla. First off the guy is wrong they don’t “bend” metal. Tesla literally invented the worlds largest stamps. Second to say they are just a car company and not a software company or AI company is so insane. They literally have some of the worlds best “software” and AI engineers. They work on projects like the human robot which they have a prototype that is clearly not a car. (The founder and CEO does falls all the time even as recent as last week where he explains this. Actually said they are a software company) Regardless of valuation and saying overvalued is one thing. But saying factually wrong info because you want to be…..I don’t know, stubborn? Ignorant? Unwilling to admit the tesla crow are right about anything? Like what is it? I like most of your stuff but this take with Tesla really ruins your reputation. It kind of shows you don’t follow facts and reality.

[@Skizi99]

Then why their PS ratio not like any other big car companies ? It’s PS ratio more owl tech but most revenue coming from car sales!

[@macfin4862]

I think the idea is that they make their money on the cars, so that's what he's valuing. A bit like people ignoring meta verse talk and only looking at revenue with facebook