Investing In Tiny Stocks, with Ian Cassel – [Invest Like the Best, EP.25]

My guest this week is Ian Cassel, a microcap investor who is always on the lookout for small companies which are run by men and women who are what he calls intelligent fanatics. Ian’s livelihood is based on the success or failure of a small group of companies that you have never hear of—he takes the idea of “skin in the game” to another level. We explore what Ian looks for in managers, why investors might want invest in microcap companies and the benefits of a frugal approach to life. Buying public companies that are as small as the ones which Ian considers is an entirely different style of investing than what most of us are used to in the public markets. Please enjoy!

Books Referenced

Intelligent Fanatics Project: How Great Leaders Build Sustainable Businesses

Zero to One: Notes on Startups, or How to Build the Future

How to Win Friends & Influence People

Think and Grow Rich

Tools of Titans: The Tactics, Routines, and Habits of Billionaires, Icons, and World-Class Performers

Getting There: A Book of Mentors

100 Baggers: Stocks That Return 100-to-1 and How To Find Them

100 to 1 in the Stock Market: A Distinguished Security Analyst Tells How to Make More of Your Investment Opportunities

Links Referenced

Seven Intelligent Fanatics From India

MicroCapClub

Floats and Moats

Show Notes

1:53  – (first question) – What is an intelligent fanatic and what drew Ian to it for his career.

2:28 – Intelligent Fanatics Project: How Great Leaders Build Sustainable Businesses

 

4:58 – Why intelligent fanatics is so important to him as a microcap investor

5:32 – Seven Intelligent Fanatics From India

 

6:00 – What are the most common characteristics shared by intelligent fanatics

 

7:21 – What drew Ian to microcaps and what unique opportunities does it present

 

10:52 – What makes this such a fertile but less efficient space to invest in

 

14:48 – What happens when you buy these small companies with market cap under $50 million

 

15:51 – What does Ian look for to avoid pitfalls when buying into microcap companies

 

17:07 – Looking at Ian’s portfolio and the number of stocks and how often he turns them over

 

18:49 – Exploring the process and characteristics that are important to Ian when choosing a company that he will take a position in

 

22:43 – How is Ian’s valuation approach different from a systematic strategy to choosing microcaps

 

25:09 – Ian’s price discipline and when does something become too expensive

 

26:17 – Does statistical achievement matter

 

26:40 – What are the reasons to sell a position in a business

 

29:37 – Does intuition play a large role for Ian when exploring a company

 

30:32 – Does Ian think about going into the private company space

 

32:00 – What does the average microcap investor look like and why does Ian not take outside money for his investments

32:40 – MicroCapClub

 

33:45 – Ian explains how he got started and why he is focused on Microcap investments

 

37:09 – What was the next step for Ian that led him into analyzing larger microcap investments

 

40:09 – After landing on Ian’s radar, what does he do in terms of approaching a new business

 

43:06 – Any industries or companies that Ian actively avoids

 

44:30 – The formula for what makes a company un-disruptable

 

45:42 – What are the most common dimensions of an enduring moat

 

47:58 – What is Ian’s philosophy when it comes to the investment of his time and how frugality plays into it

 

52:33 – The power of his persistence and luck to be able to do this

 

54:13 – The most memorable individual day for Ian

 

55:56 – Kindest thing anyone has ever done for Ian

58:01 – Floats and Moats

 

58:55 – Some of the publications that have changed the way Ian thinks and acts

59:22 – Zero to One: Notes on Startups, or How to Build the Future

59:45 – How to Win Friends & Influence People

59:54 – Think and Grow Rich

1:00:42 – Tools of Titans: The Tactics, Routines, and Habits of Billionaires, Icons, and World-Class Performers

1:01:00 – Getting There: A Book of Mentors

 

1:01:57 – What company should people go back and look at old company reports to help them understand how things flow

1:03:24 – 100 Baggers: Stocks That Return 100-to-1 and How To Find Them

1:03:35 – 100 to 1 in the Stock Market: A Distinguished Security Analyst Tells How to Make More of Your Investment Opportunities

 

Learn More

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