TIP775: Why Your Valuation Metrics Might Be Lying to You w/ Kyle Grieve

Kyle Grieve breaks down Michael Mauboussin’s key insights on combating noise, valuing intangible-rich businesses, using the rule of 40, leveraging checklists and algorithms, understanding base rates, and more.

IN THIS EPISODE YOU’LL LEARN:

00:00:00 - Intro

00:03:00 - How to use the BIN acronym to help you deal with forecasting error

00:14:32 - Four myths in investing (many of which I’ve fallen for)

00:26:15 - Why you must take GAAP numbers on a case-by-case basis due to handicaps of the standard

00:25:07 - How the rise in passive investing is making active investing more challenging

00:33:19 - Why GAAP losers outperform GAAP winners

00:37:14 - Why you should understand the differences between pricing and valuing a business

00:48:39 - Why using assorted multiples will help identify true undervaluations

00:45:50 - How to utilize the rule of 40 in your investing regardless of whether you invest in tech or not

00:49:16 - What to know about the base rates of a public business’s survival

00:58:00 - Why most investments will fail and how to deal with the ones that succeed

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠TIP Mastermind Community⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.

Read The Consilient Observer here.

Learn about the BIN framework here.

Dive into the four myths here.

Explore valuation multiples more here

Understand total shareholder returns more here.

Improve your views on business survival here.

Follow Kyle on Twitter and LinkedIn.

Related ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠books⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ mentioned in the podcast.

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