Richard de Lisle, founder of De Lisle Partners, has significantly outperformed US equity markets over the last 27 years by investing in US small-cap value stocks. We discuss what value investing means to Richard, his focus on themes and the advantages of taking a sociological perspective. We also explore the current environment, Richard’s investments in primary producers and why investing is the greatest game.
Show notes:
[1:05] Richard talks about how his father’s misfortune inspired him to start investing
[3:09] Don’t follow others as experts can be self-serving
[4:00] Richard’s career on the sell-side
[7:01] Equities were an unloved asset class in the 1970’s and early eighties
[8:18] Getting hooked on the American market’s intricacies
[9:13] Transitioning from the sell-side to the buy-side
[12:12] Why Richard focuses on US small cap value
[13:26] Small cap value’s outperformance between 1975 and 1983
[14:38] Ducking and weaving in difficult environments
[16:25] Taking a top down approach
[17:48] There is value in the least worst
[18:40] Looking backwards not forwards
[20:18] Identifying investment themes
[23:05] People often underestimate that value stocks can become growth stocks
[24:02] Reading broadly and taking a sociological perspective
[24:39] The advantage of being detached
[25:39] Investing is the greatest game
[26:51] Investing in primary producers in an inflationary environment
[29:46] Complacency around wage inflation
[31:21] Short duration stocks
[33:05] Work out what you want and set a plan to achieve it
