Don’t Jump Off The Cliff

Here’s a great arti­cle about fel­low Queens­lan­der and val­ue investor Tobias Carlisle from Acquir­ers Funds. He was a guest on this pod­cast back in July 2020.

“The first step to becom­ing a bet­ter investor, says Carlisle, is to recog­nise that all are nat­u­ral­ly wired to jump off the cliff and fol­low the herd. So, deep val­ue invest­ing can be viewed as a sort of counter-intu­itive sur­vival guide to over­com­ing these self-destruc­tive invest­ment ten­den­cies.”

The arti­cle men­tioned that Tobias had giv­en a Google Talk so i checked that out as well.

Although Tobias and Tony agree on many things, see if you can pick which one of these rules Tony would dis­agree with.

“Carlisle advis­es val­ue investors to stick to a cou­ple of sim­ple rules :

• Buy only when the price is well below a stock’s intrin­sic val­ue.
• Sell when the price is well above the stock’s intrin­sic val­ue.”

That’s right — Tony does­n’t sell unless the stock breach­es its three point sell line or the com­pa­ny comes out with some news that affects its future prospects.

But I think Tony would agree with Tobias’ “7 prin­ci­ples of deep val­ue invest­ing”, espe­cial­ly this one:

“Fol­low sim­ple, con­crete rules to avoid errors.”