Investing Unscripted

82. Misfit Alpha: The Best Stocks You’ve Never Heard Of

Dec 9, 2023

In this podcast, Tyler Crowe shares his research on hidden stocks that have generated significant returns but remain relatively unknown. He discusses his process for finding these 'misfits' and provides examples of massive winners. The hosts also cover topics such as successful acquisition strategies, management compensation, and the investment potential of niche companies like Investors Title Company.

53:09

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Quick takeaways

Misfit Alpha offers in-depth research on undercovered companies that have generated impressive long-term returns.

Evaluating executive compensation and incentives is crucial to identifying companies that prioritize long-term growth and value creation.

Focusing on lesser-known IPOs can uncover undervalued companies with substantial growth potential.

Deep dives

Finding Hidden Gems: Uncovering Underappreciated Companies

Misfit Alpha is a platform that focuses on discovering undercovered and underappreciated companies that have generated impressive returns over the long term. It offers in-depth research and analysis of these hidden gems, highlighting their unique characteristics and potential for growth. By avoiding popular and overhyped stocks, Misfit Alpha provides investors with a different perspective and the opportunity to find mispriced assets in today's market.

Introduction

2min

Guest Introduction and Name Change

10min

Alpha: Finding Overlooked Companies with Strong Returns

14min

Approach to Investing and Characteristics of Successful Businesses

4min

Acquisition Strategies for Success

2min

Understanding Management Compensation and Shareholder Value

16min

Investment Potential of a Niche Title Insurance Company

2min

Identifying Legitimate Micro Cap Companies

6min

Everyone wants to find those hidden stocks that have generated life-changing results. Find the next Amazon or Costco before it becomes, well, Amazon or Costco. But did you know there are a lot of stocks that have been huge winners, but never became household names even as they continue to run circles around more well-known companies? Tyler Crowe, who many of you may know from his regular appearances on our YouTube channel with Jason, has made it his mission to share those winners with the world.

This week, Jeff and Jason chat with Tyler about the multi-year research project he's been on that led him to these obscure, overlooked winners that Tyler calls "misfits," and the creation of his newsletter, Misfit Alpha. We talk through Tyler's process for finding them, what he's learned, and some examples of massive winners that have compounded for decades, yet remain relatively unknown.

Looking for more of Tyler's work? Find him at:

https://www.misfitalpha.com/

Threads & Twitter: @misfitalpha

Interested in joining Misfit Alpha? Tyler is offering Investing Unscripted listeners a 20% discount: https://www.misfitalpha.com/unscripted

Companies mentioned: AJG, BCPC, COST, DHR, GOOG, GOOGL, ITIC, JMIA, TSLA

We would love feedback on the show. Share with us at:

Email: thesmatteringshow@gmail.com

Twitter: @InvestingPod

Check out our YouTube channel for more content:

https://www.youtube.com/@InvestingUnscripted

Find the 2023 Smattering Portfolio here:

https://tinyurl.com/Smatterfolio2023