TIP846: Stock Picker: How to Live Off Your Portfolio w/ Ian Cassel
The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network
Why Microcaps Have Short Winning Seasons
Ian explains that concentration risks make microcaps fragile, so even winners often require selling within 6 to 36 months as growth fades.
In this episode, Stig Brodersen welcomes back Ian Cassel, founder of MicroCapClub and CIO of Intelligent Fanatics Capital Management, to discuss his new book, Stock Picker. They dig into why most microcaps must be sold within 36 months, why Ian never holds a large cash position, and how he arrived at the $2 million that let him live off his portfolio.
IN THIS EPISODE YOU’LL LEARN:
(00:00:00) Intro
(00:12:24) Why Ian's first big win at 16 shaped his risk tolerance for life.
(00:24:48) How Ian arrived at the $2 million he needed to become a full-time private investor, and why the number was about pain tolerance, not expected returns.
(00:26:48) Why there is no such thing as saving when you live off your portfolio, and the safeguards Ian built to survive consistently inconsistent returns.
(00:32:19) Why most microcaps you buy must be sold within 36 months, even the winners, and why the greats had their best returns in their highest-turnover years.
(00:40:56) Why Ian never holds a large cash position, and how a 3 to 5% cash buffer forces him to sell his least convicted idea.
(00:46:09) Whether Ian would take a guaranteed 20% annual return for the rest of his life.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive The Intrinsic Value Mastermind Community.
- Learn more about how to join us in NYC for our Intrinsic Value Conference.
- Ian's new book, Stock Picker.
- Ian's community, MicroCapClub.
- Meet Ian in person at a Planet MicroCap event.
- Follow Ian on X and LinkedIn.
- Listen to our interview with Ian Cassel about the five core skills of stock picking.
- Listen to our interview with Ian Cassel about multi-bagger first principles.
- Listen to our interview with Ian Cassel about finding lightning in a bottle in microcaps.
- Listen to our interview with Ian Cassel about the big world of microcaps.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
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