Capital Ideas Podcast

Small-cap stocks: Turning over many rocks in search of a few gems

Jul 4, 2024
Capital Group portfolio manager Dimitrije Mitrinovic shares insights on uncovering hidden gems in small-cap stocks, emphasizing the importance of patience and boldness. He discusses characteristics of small companies, Sweden's business environment, and his passion for investing. The podcast delves into investing principles, management quality, successful stock picks, industrial companies, and portfolio managers' favorite books and travel hacks.
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INSIGHT

Small-Cap Investing

  • Small-cap companies are more fragile than large caps, relying on narrow geographies or few products.
  • Finding successful small-cap companies requires patience and decisiveness.
INSIGHT

Investment Criteria

  • Dimitrije Mitrinovic looks for three things in small-cap companies: scalability, high quality, and competent capital allocation.
  • He prioritizes businesses that can grow significantly and manage their cash flow effectively.
ANECDOTE

Formative Experience

  • Early in his career, Mitrinovic disregarded macro views and focused on company financials.
  • Studying industrial companies led him to discover roll-ups and TransDigm, a successful aerospace company.
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