This book is borderline repetitive regarding the concept of mean reversion, but at the same time it is a treasure trove of counter intuitive data on market beating Deep Value portfolios.
Great summary of all forms of value investing their origins, evolution and the world today Starts reading like a research paper towards the end, but I don t mind it.
Economic Climate Is Ripe For Another Golden Age Of Shareholder Activism Deep Value Why Activist Investors And Other Contrarians Battle For Control Of Losing Corporations Is A Must read Exploration Of Deep Value Investment Strategy, Describing The Evolution Of The Theories Of Valuation And Shareholder Activism From Graham To Icahn And Beyond The Book Combines Engaging Anecdotes With Industry Research To Illustrate The Principles And Methods Of This Complex Strategy, And Explains The Reasoning Behind Seemingly Incomprehensible Activist [Tobias E.
Carlisle] ã Deep Value [suspense PDF] Ebook Epub Download ã Maneuvers Written By An Active Value Investor, Deep Value Provides An Insider S Perspective On Shareholder Activist Strategies In A Format Accessible To Both Professional Investors And Laypeople The Deep Value Investment Philosophy As Described By Graham Initially Identified Targets By Their Discount To Liquidation Value This Approach Was Extremely Effective, But Those Opportunities Are Few And Far Between In The Modern Market, Forcing Activists To Adapt Current Activists Assess Value From A Much Broader Palate, And Exploit A Much Wider Range Of Tools To Achieve Their Goals Deep Value Enumerates And Expands Upon The Resources And Strategies Available To Value Investors Today, And Describes How The Economic Climate Is Allowing Value Investing To Re Emerge Topics Include Target Identification, And Determining The Most Advantageous Ends Strategies And Tactics Of Effective Activism Unseating Management And Fomenting Change Eyeing Conditions For The Next MA Boom Activist Hedge Funds Have Been Quiet Since The Early S, But Economic Conditions, Shareholder Sentiment, And Available Opportunities Are Creating A Fertile Environment For Another Golden Age Of Activism Deep Value Why Activist Investors And Other Contrarians Battle For Control Of Losing Corporations Provides The In Depth Information Investors Need To Get Up To Speed Before Getting Left Behind Extrapolation is instinctive while mean reversion is not In the era of moat and growth investing, this book provides much needed empirical evidence from across various time periods and markets, on how Graham type of strategies still outperform almost all other approaches A must read.
Warning The book is like an academic paper with tonnes of surveys and data Not a very fluid read.
Ú Deep Value Æ In the first half of the book, Tobias Carlisle compares various metrics used to identify deeply undervalued stocks and presents cases from empirical research that show Deep Value stocks in general outperform growth quality stocks This outperformance is attributed to the phenomenon of mean reversion In the second half, and the interesting one, Tobias really gets to the heart of Deep Value investing by depicting cases of deeply undervalued companies from the real world and narrating how corrective forces helped unlock their value to the shareholders.
Hands down one of the best books I have read to this date read it twice in 6 months , it offers counter intuitive ideas and facts, and backed by quality statistics.
Long version review Mean reversion in business is pervasive can think of cyclical nature of businesses High return businesses attract competition and drives down return to the point where the invested capital can no longer make any profit or even endure loss, some in the industry then choose to exit, and so the returns move gradually to the peak again In a cruel irony, businesses find capital in abundance both from retained earnings and outside investors when they need it least and scarce when they need it most.
In light of this, when we find a company increasing its CAPEX during trough years, it may be a good investment opportunity as it might be a shining star when t Carlisle makes the case for intrinsic value relative to earnings or the inverse the acquirer s multiple as the only measure of value worth pursuing The author rushes through analyses, which makes it difficult to follow the logic at times, but provides copious supporting data for his argument in the form of charts, tables and other figures so the reader can follow along visually.
This is a collection of very detailed historical case studies with an interesting investing thesis hidden between the lines and in the last chapter.
I enjoyed it, though would prefer thesis, less history.
1 1967 2 1929 1 70 30 2 3 3 1 2
What I liked about the book Very simple and easy to read It s about 280 pages and doesn t have too much superfluous writing It s easy to read and understand.
Backed by empirical data that is a fairy large sample and is robust.
Provides a good understanding of the concept of mean reversion and its importance in investing.
What I did not like about the book Does not explain the acquirer s multiple as well as it could and should have I figured it out on my own but the book could have explained the formula a bit better and perhaps dedicated a couple pages to demonstrate an example of how it could be calculated from an actual co