I feel like i've been a full time private micro cap in bester which is hard enough. I'm not trying to get the next big endowment check in. I want to build a firm that is going to always be small, probably, but hopefully i'll perform oe long term. It's difficult yor anti fragile ye, which is so sper smart. You kow, it's so refreshing actually, given the last couple of years where everything was priced to magic ratios,. If you had even a reasonable story, you could get funding. And i'm not saying people who did were stupid, there was fire.
Ian Cassel is the founder of MicroCapClub, a community where hundreds of investors have discussions on US and Canadian microcap companies. They also help you become better investors with educational content covering investing strategies, intelligent fanatic CEOs, great investors, and more. Ian is also Founder and CIO at Intelligent Fanatics Capital Management, whose goal is to own the smallest, most illiquid, least institutionally owned, misunderstood businesses that are run by intelligent fanatics.
Show Notes:
- Microcaps are boons for quants
- How Ian fell in love with microcaps
- Managing other people’s money
- Advantages and risks of microcap investing
- Profitability, scarcity, and great stories
- The top-down and bottom-up investment framework
- Not being limited by minimum market caps
- Being a hands-on investor
- Turnovers in microcap portfolios
- PE taking over microcap firms
- Increasing the flywheel of serendipity
- Preparing to be effortless
- Not getting into arguments with people with made up minds
- Being honest about your investment approach
- The “mute” button hack
- Identifying bad management
- Importance of base rates
- Educating about microcaps
- Optimism beats pessimism
- Do macroeconomic factors really matter?
- What is chasing you?
Books Mentioned:
- The Psychology of Money, by Morgan Housel
- The Tao Jones Averages, by Bennett Goodspeed