In the first installment of his series on value investing, Stephen Clapham of Behind the Balance Sheet is joined by Tobias Carlisle, principal and founder of The Acquirers Multiple. Clapham and Carlisle explore how to make money by investing in beaten-down “value” stocks — those not raised by the tide of low-interest rates that have buoyed so many “growth” stocks with no earnings such as Zoom or Chewy. Carlisle draws upon the past 150 years of the historical performance of value stocks over growth stocks, using these historical trends to build a framework for identifying opportunity going forward. Filmed on October 22, 2020. Key learnings: There are periods of irrationality so extreme that value investors with perfect clairvoyance will still fail to outperform the market. Nevertheless, mean reversion to value is an enduring historical trend, and in 2020, deep value stocks offer a favorable risk/reward. Shorting stocks is dangerous, but if undertaken, should be done only when the momentum is moving against the stock.