Planet MicroCap Podcast | MicroCap Investing Strategies Ep. 245 - The Special Situation is Finding Growth-Oriented Firms Using Value Framework with Shree Viswanathan (SVN Capital), Steven Kiel (Arquitos Capital), Keith Smith (Bonhoeffer Capital Management)
Oct 6, 2022
Join Shreekkanth Viswanathan, Steven Kiel, and Keith Smith as they explore the intriguing world of growth-oriented investing within a value framework. Shree advocates for owner-operated, high-return firms, while Steven dissects opportunities in corporate restructuring and SPAC fallout. Keith highlights the importance of M&A and the pursuit of undervalued growth. Together, they delve into investor sentiment, the potential upside of downturns, and how to navigate market fears to uncover hidden gems.
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Growth Through Reinvestment Matters
- Organic growth is scarce and often already priced into companies.
- Finding firms that grow via disciplined M&A or reinvestment creates hidden upside.
John Neff's Old-School Advantage
- Shree recalled reading John Neff's book early in his career and how limited information access once shaped investing.
- The anecdote shows today's information advantage versus past investors calling home from abroad.
Require Reinvestment And The Right Management
- Look for businesses that generate high returns on incremental capital and have clear reinvestment opportunities.
- Avoid acquisitive growth unless management has the right process, temperament, and track record.
