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TIP563: Lightning in a Bottle & Microcap Investing w/ Ian Cassel

Jul 7, 2023

Ian Cassel, a full-time microcap investor and CIO of Intelligent Fanatics Capital Management, shares his insights on navigating the microcap landscape. He discusses the transformative role of mentors in his journey and the key traits that make certain investments like 'lightning in a bottle.' Ian reveals unconventional methods for business analysis and the importance of ongoing due diligence. He also emphasizes the necessity of identifying resilient companies that can thrive in any market and shares effective strategies for sourcing new investment ideas.

01:05:33

Episode guests

Ian Cassell

Highlights

AI Chapters

Episode notes

The Pros and Cons of Screening for Companies

01:57

The Attractive Scarcity of Companies with Low Outstanding Share Accounts

01:20

The Importance of Interacting in Due Diligence and Investment Analysis

03:14

Finding the Right Mentor and Developing Relationships

01:01

Intro

2min

Networking and Mentorship in Microcap Investing

16min

Unlocking Microcap Investments

9min

Exploring Microcap Investments: The FAIR Framework

16min

Balancing Fundamentals and Leadership in Investing

5min

Navigating Micro-Cap Investments

21min

Exploring Microcap Investing Resources and Insights

2min

Clay Finck chats with fan favorite Ian Cassel about a wide array of topics, including the role of mentors in his development as an investor, the three characteristics of a business that lead to “Lightning in a Bottle”, and unconventional methods he uses to understand a business better than nearly all other investors.

Ian is a full-time microcap investor and CIO of Intelligent Fanatics Capital Management. He is the founder of MicroCapClub.com and co-founder of the IntelligentFanatics.com.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

06:40 - The role networks and mentors have played in Ian’s development as an investor.

10:47 - How Ian recommends going about finding and developing a relationship with a mentor.

13:50 - How the microcap landscape has changed over the past 20 years.

18:09 - What countries Ian is finding his best microcap ideas.

19:33 - The three characteristics of a business that lead to “Lightning in a Bottle.”

37:47 - Unconventional ways that Ian analyzes and better understand a business.

48:15 - On-the-ground due diligence methods that Ian uses.

56:51 - How Ian performs maintenance due diligence after purchasing a stock.

59:29 - Why you shouldn’t “coffee can” microcaps.

64:03 - How Ian finds companies that are positioned to grow during any market environment.

68:00 - Why Ian prefers to be in the first wave of discovery in microcap land.

72:40 - How investors can source new investment ideas.

77:00 - The investment filter Ian has recently used to discover ideas before other microcap investors.

81:16 - What Ian’s daily journaling practice looks like.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Ian’s Beginner’s Guide to Researching Microcaps.
Ian’s community, MicrocapClub.
Ian’s book, Intelligent Fanatics.
Check out of our review of Mastering the Market Cycle, or watch the video here.
Follow Ian on Twitter.
Follow Clay on Twitter.

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