Fritz Kortner
Margo Woode

The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market by Tobias Carlisle


The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market by Tobias Carlisle

Author:Tobias Carlisle [Carlisle, Tobias]
Language: eng
Format: epub, azw3
Publisher: Ballymore Publishing
Published: 2017-10-14T04:00:00+00:00


Greenblatt wrote up the results. The article appeared in the Journal of Portfolio Management in 1981 and was called “How the Small Investor Can Beat the Market.”

In the article, Greenblatt, Pzena, and Newberg asked, “Why does it work?” They answered, “We were unable to discover any ‘magic’ qualities associated with stocks selling below liquidation value”:[xlvi]

Simply stated, by limiting our investments to stocks that according to fundamental notions of stock valuation appear severely depressed, we were able to locate more than our share of these inefficiently priced, undervalued securities. In other words, there are probably many more undervalued stocks that are not selling below liquidation value.

Graham was right. Buying a group of stocks using his simple cigar-butt rule worked. Other studies confirm Greenblatt’s results.



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