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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volunteer_activism 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.
volunteer_activism 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.
volunteer_activism 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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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.
Guest: Chris Waller
Founder of Plural Investing, a seasoned investor known for his disciplined approach to small cap value investing. Chris identifies hidden gems through meticulous research with a keen focus on governance and management integrity.
Chris defines success as becoming an expert in the small cap space, building a comprehensive knowledge database of companies, and having the freedom to direct his attention where he chooses.
Key Discussion Points:Early Background and Investing Journey (03:17)Columbia Business School and Joel Greenblatt's Influence (06:08)"Sleuth Investing" Approach (11:37)Hidden Gems Investing (17:08)TerraVest Case Study (21:32)Corporate Governance and Management Integrity (28:06)Portfolio Management and Risk (33:49)Small Cap Misconceptions (38:40)Luxury Goods and Value Investing (44:31)Closing Thoughts