Tobias Carlisle: Redefined Value Investing For 2025
In the early 2020s, skepticism toward value investing surged. As Tobias Carlisle noted on the Excess Returns Podcast, “In 2020 and 2021, the growthy, better-quality companies were having a field day, and value was again being left behind.”
Critics argued value investors were merely price investors, relying on multiple expansion rather than deep fundamental analysis. This critique led Carlisle to reevaluate his investment approach.
“I went back to the drawing board and realized I probably did rely too much on multiple expansion,” he admitted. He found that value stocks are often mispriced because “these businesses often don’t perform as poorly as everyone expects, which is why they’re cheap in the first…
