MicroCapClub

A Conversation with Jason Hirschman

Sep 24, 2024

In this engaging talk, Jason Hirschman, a seasoned private investor at Hudson 215 Capital, shares his journey from small business owner to managing a nine-figure portfolio. He dives into the intricacies of microcap investing, emphasizing the significance of management relationships and qualitative research. Hirschman contrasts European and American management styles, shedding light on cultural influences in corporate governance. He also discusses the emotional challenges of investing and the crucial balance between holding and selling stocks.

01:15:46

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Jason Hirschman

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Quick takeaways

Jason Hirschman's background as a small business owner has profoundly shaped his investment philosophy, emphasizing resilience and strategic risk management in microcap investing.

His transition to full-time investing was influenced by a shift from technical analysis to focusing on fundamental investments, inspired by the insights of Peter Lynch.

Hirshman highlights the importance of patience in investing, as illustrated by his experience with Diamond Hill, where long-term holdings could have yielded greater returns.

Deep dives

Jason Hirshman's Background and Early Influences

Jason Hirshman shares his unconventional upbringing, having struggled with speech as a child, which led to early misconceptions about his intelligence. His parents, who met in the Peace Corps, instilled a strong work ethic and a sense of resilience in him. Growing up in a family business centered around eyewear manufacturing, he was exposed to real-world challenges such as theft and financial crises, which shaped his views on trust and risk. This unique background directly influenced his approach to microcap investing, emphasizing the reality of volatility and the need for strategic partnerships.

Intro

2min

Foundations of Resilience: A Journey into Investing

9min

Navigating the Microcap Landscape

21min

The Importance of Management Relationships in Micro-Cap Companies

3min

Navigating Microcap Investments

23min

Cultural Insights on Management Approaches: Europe vs America

2min

Mastering Investment Decisions

17min

In this conversation Ian Cassel sits down with Jason Hirschman. Jason Hirschman is on Ian Cassel's Mount Rushmore of private investors. Why? He was a small business owner that parlayed that and some investing success into becoming a full-time private investor, and now manages capital for his family office at Hudson 215 Capital. He is one of the few private investors that has turned a small personal portfolio into a large nine figure portfolio. Jason's investments typically feature high return on invested capital, superior management, and secular growth tailwinds. He focuses on non-resource microcap equities domiciled in the U.S., Canada, and Europe.

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Find Jason here:

MicroCapClub: @EightTrack – Member since 2014

X: https://x.com/EightTrack180

Family Office: http://hudson215capital.com About MicroCapClub MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $500m market cap) trading on United States, Canadian, European, and Australian markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. Since 2011, our members have profiled 1200+ microcap companies. Investors can join our community by applying to become a member or subscribing to gain instant view only access. MicroCapClub’s mission is to foster the highest quality microcap investor Community, produce Educational content for investors, and promote better Leadership in the microcap arena. For more information: https://microcapclub.com

Chapters:

00:00 Disclaimer

00:15 Intro

02:12 Jason’s Background

05:16 Talking about Investment history

08:25 First big win

10:57 When start looking at MicroCaps

12:57 Evolving as capital has grown

16:49 What type of situation attracted to

22:49 Find something to buy something - how long to make position

27:11 How determine to invest and start position

29:00 Build position

31:41 Establishing relationship with management team

34:17 What did you think about potential of XPEL at beginning

40:50 Thinking about selling

42:50 Concentration

47:10 Investing and working with family

50:23 Q&A - How many positions do you hold?

52:07 Evolution of spending time investing as operator vs now as full time investor

53:50 How do you source ideas

55:20 How does what you look for evolved?

57:18 Are there some differences between European companies and North American ones?

1:01:25 How has been being a small business owner impacted investing?

1:03:47 Personality make you an above average investor?

1:05:08 How does a position become a real one?

1:11:05 Slugging percentage vs batting average

Disclaimer: All content on this channel is for discussion, education, entertainment, and illustrative purposes only and SHOULD NOT be construed as professional financial advice, solicitation, or recommendation to buy or sell any securities, notwithstanding anything stated on this channel. There are risks associated with investing in securities. Loss of principal is possible. Past performance is not a predictor of future investment performance. Ian Cassel and the guests on this channel are not responsible for investment actions taken by viewers. Should you need such advice, consult a licensed financial advisor, legal advisor, or tax advisor. You agree to verify all information yourself before investing. Any past performance discussed during this program is no guarantee of future results. Investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. All views expressed are personal opinions as of the date of recording and are subject to change without the responsibility to update views. No guarantee is given regarding the accuracy of the information on this channel. Releasees undertake no obligation to provide accurate or sound investment statements.