A Value Investing MasterClass | Tobias Carlisle

In this episode of Excess Returns, we take a deep dive into value investing with our good friend Tobias Carlisle. We discuss the recent outperformance of small cap and value stocks, tackle the challenges of long periods of underperformance for value strategies, and examine how Tobias constructs his portfolios. We delve into his process for selecting stocks, including his focus on companies trading at discounts using the Acquirer's multiple and his approach to portfolio diversification. Our conversation also touches on the dominance of large tech companies and whether their outsized returns can continue. Throughout our discussion, Tobias emphasizes the importance of patience, skepticism about growth projections, and prioritizing survival over maximizing returns when investing.

00:00 - Intro
01:30 - Starting with market trends and value investing
02:03 - Discussion on recent performance of value stocks
05:14 - Further insights into value vs. index performance
09:26 - Discussion about look-through earnings and portfolio construction
14:26 - Multiple expansion and market performance
21:13 - Fundamental investing and quality stocks
27:12 - Explanation of setting the investable universe and screening process
34:03 - Discussion on deep value investing and paying for quality
42:24 - Discussion on concentration vs. diversification in portfolios
50:52 - Discussion on sector concentration and its importance
57:24 - Discussion on large tech companies and their market impact
01:00:44 - Considerations on capital intensity and future returns
01:01:03 - Closing thoughts and next steps for listeners
01:01:38 - Information on where to find more about Tobias and his work

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