Mario Gabelli: Accumulating And Compounding Knowledge Is Key To InvestingThe Acquirer's Multiple
In his latest interview on The Meb Faber Podcast, Mario Gabelli says investors need to accumulate and compound knowledge of certain industries in order to achieve outstanding results. Here’s an excerpt from the interview:
Gabelli: We like to visit companies, and I’ve been able to visit three or four recently in the local area and I had a company come in from Cleveland. I had dinner with them, my first dinner in New York inside of a room. We’re getting back slowly. We have practically 250 individuals that work for us, and of those, about 155 are in our Rye office and about 15 or so are in the Greenwich office, and we have offices around the world.
The U.K. is still locked down. The guys in Shanghai and Hong Kong are locked down for different reasons. And that’s us. We have 33 analysts, 20 portfolio managers. I started as a sell-side analyst in 1967, coming out of a local school and thought of covering the autos, farm equipment conglomerates and then picked up the media and entertainment.
So, we have accumulated and compounded knowledge of certain industries over an extended period of time and all that they’ve changed into. And our analysts and I drill into annual reports, 10-Qs, visit companies, which we’re going to start doing again, and we do it with a microscope, and then we look at it with a telescope, what is the company going to look like in 5 years, and what kind of multiples will exist 5 years from now, and what are our rates of return, and what’s going on in terms of consolidations in an industry, Meb. That’s the process.
You can listen to the entire interview here:
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Article by The Acquirer’s Multiple