Planet MicroCap Podcast | MicroCap Investing Strategies

It’s Not Necessarily Bottom Fishing Looking at MicroCaps with Paul Cerro, CIO of Cedar Grove Capital Management

Oct 24, 2024

Paul Cerro, CIO of Cedar Grove Capital Management, specializes in identifying growth opportunities in consumer and retail microcaps. He shares his journey from teenage market curiosity to Wall Street. Diving into microcap investing, he highlights the long-term growth potential and the importance of thorough research. Cerro discusses the risks involved, emphasizing a patient, adaptive approach to setbacks while harnessing social media as a tool for diligence. His insights provide a refreshing perspective on understanding businesses in their formative stages.

39:25

Creator website

Episode guests

Paul Cerro

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Microcap investing focuses on identifying companies with growth potential by understanding fundamentals rather than relying solely on undervaluation metrics.

Engagement with the investment community is crucial for gaining diverse perspectives and critically evaluating investment opportunities amid market volatility.

Deep dives

Introduction to Microcap Investing

Microcap investing is characterized by focusing on smaller companies that have the potential for substantial growth rather than just picking stocks that may seem undervalued or 'bottom fishing.' An emphasis is placed on understanding business fundamentals, market conditions, and the specific factors that could drive growth for these companies. The speaker illustrates this with an example of investing in consumer goods and retail sectors, explaining that spotting potential in young businesses can lead to significant investment opportunities. This approach involves identifying small companies with growth potential instead of adhering to the traditional mindset of valuing all investments solely on quarterly performance.

Intro

3min

Journey into Investing: From Teenager to Wall Street

2min

The Journey to Autonomy in Investment Management

2min

Transitioning to Micro-Cap Investing

9min

Insightful Investment Research

7min

Navigating Microcap Investment Risks

15min

My guest on the show today is Paul Cerro, CIO of Cedar Grove Capital Management. Paul was recently on Andrew Walker's Yet Another Value Podcast having a conversation about Red Cat Holdings $RCAT - a company we actually interviewed, now way back in the day, in 2019 when they were still on the Pink Sheets. He did an awesome job on the show, and invited him on today to learn more about his investing philosophy, strategy and why it's not necessarily bottom fishing when looking at MicroCaps.

For more information about Paul Cerro and Cedar Grove Capital Management, please visit: https://www.cedargrovecm.com/

We're excited to announce that we'll be partnering up with MicroCapClub for our full slate of investor conferences in 2025. Ian Cassel and his team at MicroCapClub have not only built and fostered the best community of MicroCap investors, but it's arguably one of the best investing communities, period.

We couldn't be more thrilled to leverage our expertise in curating and hosting large scale MicroCap conferences, and teaming up with MicroCapClub to put together world class conferences for the MicroCap community.

First up, the Planet MicroCap Showcase: VEGAS in partnership with MicroCapClub will be held on April 22-24, 2025 at the Paris Hotel & Casino in Las Vegas. Registration is now live, please visit: https://www.meetmax.com/sched/event_113149/conference_home.html. See you in Vegas!

Planet MicroCap Podcast is on YouTube! All archived episodes and each new episode will be posted on the Planet MicroCap YouTube channel. I’ve provided the link in the description if you’d like to subscribe. You’ll also get the chance to watch all our Video Interviews with management teams, educational panels from the conference, as well as expert commentary from some familiar guests on the podcast.

Subscribe here: http://bit.ly/1Q5Yfym

Click here to rate and review the Planet MicroCap Podcast

The Planet MicroCap Podcast is brought to you by SNN Incorporated, The Official MicroCap News Source, and the Planet MicroCap Review Magazine, the leading magazine in the MicroCap market.

You can Follow the Planet MicroCap Podcast on Twitter @BobbyKKraft

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more