Talking Billions with Bogumil Baranowski

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

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.

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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.

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