Identifying Interest in Companies in Weavan Duck to Generate Returns

Richard de Lisle, founder of De Lisle Partners, has significantly outperformed US equity markets over the last 27 years by investing in US small-cap value stocks.  We discuss what value investing means to Richard, his focus on themes and the advantages of taking a sociological perspective.  We also explore the current environment, Richard’s investments in primary producers and why investing is the greatest game.

Show notes:
[1:05] Richard talks about how his father’s misfortune inspired him to start investing
[3:09] Don’t follow others as experts can be self-serving
[4:00] Richard’s career on the sell-side
[7:01] Equities were an unloved asset class in the 1970’s and early eighties
[8:18] Getting hooked on the American market’s intricacies
[9:13] Transitioning from the sell-side to the buy-side
[12:12] Why Richard focuses on US small cap value
[13:26] Small cap value’s outperformance between 1975 and 1983
[14:38] Ducking and weaving in difficult environments
[16:25] Taking a top down approach
[17:48] There is value in the least worst
[18:40] Looking backwards not forwards
[20:18] Identifying investment themes
[23:05] People often underestimate that value stocks can become growth stocks
[24:02] Reading broadly and taking a sociological perspective
[24:39] The advantage of being detached
[25:39] Investing is the greatest game
[26:51] Investing in primary producers in an inflationary environment
[29:46] Complacency around wage inflation
[31:21] Short duration stocks
[33:05] Work out what you want and set a plan to achieve it