This Week’s Best Investing Reads – Curated Links

Here’s a list of this week’s best investing reads:

Blogs

CIO Of One Of The World’s Most Successful Hedge Funds Presents His Top Long And Short

E-CommerceEgerton Capital was co-founded in 1994 by John Armitage. Since then, the firm has yielded huge profits for its investors. Some estimates put the total value of investing earnings at over $20 billion, making it one of the most profitable hedge funds of all time. Q3 2020 hedge fund letters, conferences and more SORRY! This Read More


Free Reading: Dear Fellow Shareholders (Hurricane Capital)

The Unintended and Deleterious Societal Consequences of Quantitative Easing (The Felder Report)

Mohnish Pabrai On The Mistake Of Selling Ferrari (ValueWalk)

How Many Will Stay the Course During the Next Bear Market? (A Wealth of Common Sense)

Axel Merk: “Investing Is Not About Bragging Rights At Cocktail Parties” (Zero Hedge)

How Warren Buffett Used Insurance Float to Become the Second Richest Person in the World (Vintage Value Investing)

Notes from Howard Marks’ Lecture: 48 Most Important Things I Learned on Investing (Safal Niveshak)

This Map Shows the Most Valuable Brand for Each Country (The Investors Podcast)

What is Your Edge? (Base Hit Investing)

Explaining a Paradox: Why Good (Bad) Companies can be Bad (Good) Investments! (Musings on Markets)

Ten Years (Blog Investment Masterclass List)

Where Markets Fail: Markets Are Not Systemic (CFA Institute Enterprising Investor)

Profit Margins in a “Winner Take All” Economy (Philosophical Economics)

Confirmation Bias: Why You Should Seek Out Disconfirming Evidence (Farnam Street)

Jeff Bezos’ Criteria for a Great Business (Greg Speicher)

A Matter of Expectations (Jason Zweig)

World Population Density in 2015 (The Big Picture)

For those thinking of investing in ETFs: Are you sure? (The Globe and Mail)

Income Portfolios: The Good, The Bad, And The Ugly (Forbes)

This article was originally posted at The Acquirer’s Multiple.

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The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates. It examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization. The Acquirer’s Multiple® is calculated as follows: Enterprise Value / Operating Earnings* It is based on the investment strategy described in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations, written by Tobias Carlisle, founder of acquirersmultiple.com. The Acquirer’s Multiple® differs from The Magic Formula® Earnings Yield because The Acquirer’s Multiple® uses operating earnings in place of EBIT. Operating earnings is constructed from the top of the income statement down, where EBIT is constructed from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries and sectors possible, and, by excluding special items–earnings that a company does not expect to recur in future years–ensures that these earnings are related only to operations. Similarly, The Acquirer’s Multiple® differs from the ordinary enterprise multiple because it uses operating earnings in place of EBITDA, which is also constructed from the bottom up. Tobias Carlisle is also the Chief Investment Officer of Carbon Beach Asset Management LLC. He's best known as the author of the well regarded Deep Value website Greenbackd, the book Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014, Wiley Finance), and Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012, Wiley Finance). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law. Articles written for Seeking Alpha are provided by the team of analysts at acquirersmultiple.com, home of The Acquirer's Multiple Deep Value Stock Screener. All metrics use trailing twelve month or most recent quarter data. * The screener uses the CRSP/Compustat merged database “OIADP” line item defined as “Operating Income After Depreciation.”