Investing In Tiny Stocks

This episode is brought to you by:

CFA Institute. CFA Institute is a global association of investment professionals, whose mission is to lead the investment profession by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. CFA Institute serves a global community of investment professionals working to build an investment industry where investor's interests come first, financial markets function at their best and economies grow. The Chartered Financial Analyst credential is the most respected and recognized investment management designation in the world. The views expressed in this podcast do not necessarily represent the views of CFA Institute.

[00:01:53]  – (First question) – What is an intelligent fanatic and what drew Ian to it for his career.

[00:02:28] – Intelligent Fanatics Project: How Great Leaders Build Sustainable Businesses

[00:04:58] – Why intelligent fanatics is so important to him as a microcap investor

[00:05:32] – Seven Intelligent Fanatics From India

[00:06:00] – What are the most common characteristics shared by intelligent fanatics

[00:07:21] – What drew Ian to microcaps and what unique opportunities does it present

[00:10:52] – What makes this such a fertile but less efficient space to invest in

[00:14:48] – What happens when you buy these small companies with market cap under $50 million

[00:15:51] – What does Ian look for to avoid pitfalls when buying into microcap companies

[00:17:07] – Looking at Ian’s portfolio and the number of stocks and how often he turns them over

[00:18:49] – Exploring the process and characteristics that are important to Ian when choosing a company that he will take a position in 

[00:22:43] – How is Ian’s valuation approach different from a systematic strategy to choosing microcaps

[00:25:09] – Ian’s price discipline and when does something become too expensive

[00:26:17] – Does statistical achievement matter

[00:26:40] – What are the reasons to sell a position in a business 

[00:29:37] – Does intuition play a large role for Ian when exploring a company

[00:30:32] – Does Ian think about going into the private company space

[00:32:00] – What does the average microcap investor look like and why does Ian not take outside money for his investments

[00:32:40] – MicroCapClub

[00:33:45] – Ian explains how he got started and why he is focused on Microcap investments

[00:37:09] – What was the next step for Ian that led him into analyzing larger microcap investment 

[00:40:09] – After landing on Ian’s radar, what does he do in terms of approaching a new business

[00:43:06] – Any industries or companies that Ian actively avoids

[00:44:30] – The formula for what makes a company un-disruptable

[00:45:42] – What are the most common dimensions of an enduring moat

[00:47:58] – What is Ian’s philosophy when it comes to the investment of his time and how frugality plays into it

[00:52:33] – The power of his persistence and luck to be able to do this

[00:54:13] – The most memorable individual day for Ian

[00:55:56] – Kindest thing anyone has ever done for Ian

[00:58:01] – Floats and Moats

[00:58:55] – Some of the publications that have changed the way Ian thinks and acts

[00:59:22] – Zero to One: Notes on Startups, or How to Build the Future

[00:59:45] – How to Win Friends & Influence People

[00:59:54] – Think and Grow Rich

[01:00:42] – Tools of Titans: The Tactics, Routines, and Habits of Billionaires, Icons, and World-Class Performers

[01:01:00] – Getting There: A Book of Mentors

[01:01:57] – What company should people go back and look at old company reports to help them understand how things flow

[01:03:24] – 100 Baggers: Stocks That Return 100-to-1 and How To Find Them

[01:03:35] – 100 to 1 in the Stock Market: A Distinguished Security Analyst Tells How to Make More of Your Investment Opportunities