Stephen (Steve) Clapham is the founder of Behind the Balance Sheet, an investment research and investor training consultancy. He has 25 years of experience as an investment analyst and has been a partner and head of research at two multi-billion dollar hedge funds. We discuss his book, the Smart Money Method, how he trains finance professionals, and his investment philosophy.

For more info about the podcast, go to the episode page and make sure to follow us on Twitter/X. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on July 17, 2024.

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Episode Chapters

(00:00) Introduction by Eddie & Niklas

(02:07) Introduction with Steve

(07:39) Steve’s early career

(11:29) Has finance become a more boring work environment?

(15:02) Steve’s investment philosophy over time

(22:48) Capital cycle investing

(26:29) Investing with crooks can be highly profitable

(29:30) How investors and finance professionals should learn today vs yesterday

(37:50) Exploiting the gap between perception and reality

(45:25) How to determine whether companies are over or under-earning

(51:48) Retesting the hypothesis after a decline

(58:57) The biggest skill shortage that Steve sees

(01:06:18) Key takeaway for someone entering the industry

(01:14:15) Impressive people that Steve has met

(01:20:04) The plan for Steve and his business

(01:25:42) How to get in touch with Steve

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Books Mentioned

• The Smart Money Method - Stephen Clapham

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Companies Mentioned

• Diageo
• Adyen
• Hermes
• Burberry

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More on Stephen

• Behind the Balance Sheet
• Twitter/X
• LinkedIn

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About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

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What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

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What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

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Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se