Value I: Diamonds in the Rough

Published on
October 29th, 2020
Duration
51 minutes


Value I: Diamonds in the Rough

The Big Picture ·
Featuring Stephen Clapham and Tobias Carlisle

Published on: October 29th, 2020 • Duration: 51 minutes

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. Steve Clapham's investment service, Behind the Balance Sheet, can be found here: https://www.behindthebalancesheet.com/

Comments

Transcript

  • RY
    Roy Y.
    29 October 2020 @ 09:57
    Interesting conversation .... Thank you
    • JF
      Jack F. | Real Vision
      29 October 2020 @ 17:35
      Glad you enjoyed it, Roy!
    • SC
      Stephen C. | Contributor
      2 November 2020 @ 16:55
      glad you liked it Roy
  • LE
    Luke E.
    29 October 2020 @ 15:21
    Tobi is the best!
    • SC
      Stephen C. | Contributor
      2 November 2020 @ 16:55
      I totally agree Luke - he is a really interesting and fun guy
  • RL
    Ruby L.
    29 October 2020 @ 18:41
    Enjoyed a new perspective on the spreads between value and growth and arguments for ETF vs fund is refreshing to see the investors needs first. Too many times LT s/h are pushed by unnecessary taxes on gains and income they didn’t receive due to a fund having to allocate...
    • SC
      Stephen C. | Contributor
      2 November 2020 @ 16:54
      Gald you liked it
  • DM
    Dominic M.
    30 October 2020 @ 04:04
    10/10
    • SC
      Stephen C. | Contributor
      2 November 2020 @ 16:54
      Thanks Dominic - great you enjoyed it
  • MO
    Master O.
    30 October 2020 @ 04:57
    Wouldn't be easier just to have a balanced portfolio between Value and Growth the way Rob Arnott is doing it? So if growth outperforms your value stocks you re balance the profits towards growth and vice versa. I really don't get this ideological battle between growth and value.
    • SC
      Stephen C. | Contributor
      2 November 2020 @ 16:54
      I don't know what Tobias would say but in my view value and growth are really two sides of the same coin. Who doesn't believe they are buying an investment which will become more valuable? But there are of course stocks which are pure growth and stocks which are very deep value and as I understand Tobias' funds (which is simply my impression), he is buying stocks which are bombed out and out of favour, ie heavily towards one extreme.
  • TM
    Tyler M.
    31 October 2020 @ 03:41
    Good stuff
    • SC
      Stephen C. | Contributor
      2 November 2020 @ 16:51
      glad you liked it!
  • VB
    Vikram B.
    29 October 2020 @ 04:23
    Any other Plus member unable to view this? Maybe the wrong tier lock has been set or is it meant only for Pro?
    • ds
      durgesh s.
      29 October 2020 @ 04:50
      Yes i am a plus member and its not allowing me to view pl
    • JF
      Jack F. | Real Vision
      29 October 2020 @ 14:36
      Thank you for bringing this to our attention. This video is meant for Plus. We are looking into this