Doesn’t multiple expansion in value come from improving fundamentals. Like for example Dillards went up 10x. How do you decide how much came from improving fundamentals and multiple expansion? I’m sure most of the price appreciation came from improving fundamentals.
The general idea is that when investors see improving prospects for a company they will pay more for a dollar of earnings and the pe multiple expands. Historically this has been a significant part of the return of the value factor.
Toby is always so interesting to listen to, although on his own podcast the gems are a little more sparse. So I prefer concentrated Toby on others podcasts
Everything Tobias says makes sense, but both of his ETFs underperform SPY. Just goes to show: there's no free lunch, it's extremely difficult to have any alpha, and just how hard it is to beat a self adjusting list of the largest 500 companies listed in the US.
@@Aubatron his specific ETFs haven't been around that long. But they are based on backtesting strategies going back to the 1860s. It's a "history shows that" argument. Buffetts investment in BYD is a perfect example.
This is the best newfound channel of 2024. Some brilliant interviews. I am binging on your content.
Thank you so much! We appreciate you watching.
Here here!
Big fan of Toby keep bringing him back to hold the record
We plan to!
Doesn’t multiple expansion in value come from improving fundamentals. Like for example Dillards went up 10x. How do you decide how much came from improving fundamentals and multiple expansion? I’m sure most of the price appreciation came from improving fundamentals.
Basically why would a stock rerate unless there was some fundamental reason to. Apart from meme stocks.
The general idea is that when investors see improving prospects for a company they will pay more for a dollar of earnings and the pe multiple expands. Historically this has been a significant part of the return of the value factor.
@@haren1996you’re implying that the market is rational lol
Toby is always so interesting to listen to, although on his own podcast the gems are a little more sparse. So I prefer concentrated Toby on others podcasts
What about Temu and Shein as emerging competitors for Amazon ?
Warren Mosler
Everything Tobias says makes sense, but both of his ETFs underperform SPY. Just goes to show: there's no free lunch, it's extremely difficult to have any alpha, and just how hard it is to beat a self adjusting list of the largest 500 companies listed in the US.
You need to read his book to understand
They underperform until they don't. The violence of the correction is larger than the time you have to wait for it. Read his book.
@@travismonk2804How long have his ETFs been around? If it’s been through multiple cycles, his statement about the correction is irrelevant.
@@Aubatron his specific ETFs haven't been around that long. But they are based on backtesting strategies going back to the 1860s. It's a "history shows that" argument. Buffetts investment in BYD is a perfect example.
@@travismonk2804 Ah ok makes sense. Theory and in practice can be two very different things though. Only time will tell.