Exiting Positions and Evaluating Companies in a Portfolio

This chapter discusses the approach to exiting or selling a position in a portfolio, specifically in the context of small cap companies. It highlights the importance of staying updated, recognizing fundamental changes in a business, and evaluating if a company is the best investment choice. Additionally, it explores the strategy for investing in small cap companies and the growth potential of Clearwater Analytics.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

Kyle Grieve chats with Rayna Lesser Hannaway about her business flywheel model to identify great businesses, a use case of the business flywheel on one of Polen Capital’s holdings, Globant, the strength of businesses with repeatable sales, the advantages of investing in small-cap stocks, how to deal with valuations in high-quality businesses, how to determine when to exit an investment based on a businesses fundamentals, and a whole lot more!

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

05:27 - A 5-step business flywheel approach to finding great businesses.

05:35 - Balancing a portfolio in the small-cap space based on growth.

12:34 - A breakdown of 3 high-quality small caps: Globant, Goosehead Insurance, and Clearwater Analytics.

16:11 - Popular misconceptions of diversification in small-caps.

29:19 - Why high-quality small caps often are undervalued by the market.

35:32 - Why using 5-year models for growth and valuation projections is so effective.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Read Rayna’s perspectives here.
Check out all the books mentioned and discussed in our podcasts here.

NEW TO THE SHOW?

Check out our Millennial Investing Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try Kyle's favorite tool for picking stock winners and managing our portfolios: TIP Finance.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.

SPONSORS

Support our free podcast by supporting our sponsors:

⁠CFI Education⁠
⁠Airbnb⁠

Connect with Kyle: Twitter | LinkedIn | Website

Connect with Rayna: LinkedIn | Website

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app

Home Top podcasts Popular guests