Investing in Small Cap Companies

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The small cap asset class on the whole is more inefficient than large caps. The first thing that we look for at Poland Capital is to make sure that a company is uniquely positioned with durable competitive advantages. Beyond that, we're looking for robust business models and specifically what we're trying to find are margin structures that are really conducive to generating a lot of cash"

IN THIS EPISODE, YOU’LL LEARN:

03:55 - Rayna debunks some of the myths on investing in small cap stocks.
05:24 - What are some common mistakes investors make when investing in small cap companies?
08:28 - The benefits of including small cap companies in your portfolio.
09:19 - Rayna's investment criteria for finding great small and mid cap companies.
21:04 - How to determine if a company’s growth is sustainable and persistent.
24:12 - The difference between small cap growth vs small cap value strategies.
30:06 - How small cap companies typically perform in high inflationary, low growth environments.
38:15 - Why the multiple compression in small caps make them very attractive right now.
39:00 - What are some companies Rayna thinks have great potential right now?
42:13 - What is Rayna’s valuation process for small cap companies?
45:42 - Rayna’s conviction behind Five Below, Etsy, and Bumble.
And much, much more!

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

BOOKS AND RESOURCES

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Check out: Polen Capital.
Related Episode: Small Cap Investing w/ Eric Cinnamond - TIP156.

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