The Security Analysis Podcast

Ian Cassel: Successful Microcap Investing

14 snips
Oct 16, 2024
Ian Cassel is a full-time private investor with two decades of microcap investing experience and the founder of Microcap Club. He shares his transformative journey from tech investing during the dot-com boom to mastering microcap strategies. Cassel discusses the resilience needed to navigate downturns and the critical importance of due diligence. He highlights the remarkable evolution of Hanson’s Natural into Monster Beverage, emphasizing patience. Lastly, he guides aspiring investors on leveraging Microcap Club for education and focusing on profitable opportunities.
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ANECDOTE

XM Meeting Sparked Microcap Career

  • Ian Cassel bought XM Satellite Radio as a college student and turned $8,000 into a large gain after a short squeeze.
  • That experience ignited his long-term focus on microcaps and meeting management in person.
INSIGHT

Small Profitable Microcaps Resist Institutional Selling

  • During the GFC Ian found very small profitable microcaps outperformed larger microcaps because institutions didn't own them.
  • He uses this to prefer sub-$50M market caps where capital flows can't force selling.
INSIGHT

Expect Short Win Windows

  • Microcap winners often have short shelf lives; most gains occur in two-to-three year windows.
  • Plan holdings around 2–3 year theses and accept portfolio turnover is normal.
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