Talking Billions with Bogumil Baranowski

The Sleuth Investor: How Chris Waller Uncovers Hidden Small Cap Gems

13 snips

Jun 2, 2025

Chris Waller, founder of Plural Investing, shares insights from his extensive background in small-cap value investing. He discusses his 'sleuth investing' approach, which emphasizes rigorous research and the significance of management integrity. Waller highlights a fascinating case study on TerraVest, revealing how governance impacts investment outcomes. He also clears misconceptions surrounding small caps and explores the unique dynamics of value investing in luxury markets. For Waller, success lies in depth of knowledge and the freedom to choose where to focus.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ADVICE

Go Beyond Reports To Understand

Read annual reports, earnings calls, and presentations thoroughly as a baseline.
Go beyond and talk to industry people to deeply understand companies and industries.

ADVICE

Focus And Be Patient

Investing deeply in fewer stocks allows time for thorough research.
Patience is critical to wait for prices that reflect real value.

ADVICE

Finding Hidden Gems

Identify hidden gems as smaller firms with little sell-side coverage or limited public info.
Use qualitative research to uncover sustainable returns and growth opportunities.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

One Up On Wall Street

Peter Lynch

In 'One Up On Wall Street,' Peter Lynch explains how average investors can outperform professionals by leveraging their everyday experiences and knowledge. Lynch advocates for investing in companies and products that are familiar and understandable, rather than following trendy or complex investments. He provides easy-to-follow advice on analyzing financial statements, identifying different types of companies (such as cyclical, turnaround, and fast-growing companies), and maintaining a long-term investment strategy. The book emphasizes the importance of simplicity, patience, and fundamental analysis in achieving successful investments.

Common Stocks and Uncommon Profits

Philip A. Fisher

In 'Common Stocks and Uncommon Profits', Philip A. Fisher outlines his investment philosophy, which focuses on identifying and investing in high-quality growth companies. The book is renowned for Fisher's '15 points to look for in a common stock', which include evaluating a company's products, management, sales organization, research capabilities, and long-term growth prospects. Fisher advocates for a qualitative approach to investing, emphasizing the importance of understanding the business and its management rather than relying solely on quantitative metrics. The book also discusses when to buy and sell stocks, the role of dividends, and the pitfalls of short-term thinking in investing.

The snowball

Warren Buffett and the Business of Life

Alice Schroeder

This book provides an unprecedented look into the life and investment philosophy of Warren Buffett. Written by Alice Schroeder, who gained unparalleled access to Buffett and his inner circle, it delves into the complexities and paradoxes of Buffett's life. The book covers his work, opinions, struggles, and triumphs, and highlights key principles such as intrinsic value, margin of safety, and long-term perspective. Buffett’s legacy is not just his wealth, but the principles and ideas that have enriched people’s lives.