2025-03-09
1 小时 19 分钟You're listening to TIP the consensus is.
That small cap stocks are not synonymous with market beating returns among the investing community, but Adam Wilkes Fund Greystone Capital Management has invested exclusively in microcap stocks and has returned 23.8% net of fees since inception versus the S&P 500's annualized returns of 17.7%.
So that general thinking is prone to error.
Today Adam and I will discuss some of these holes in thinking, why they exist, and how investors with an open mind can take advantage of these market areas with higher inefficiencies.
Adam is a very interesting investor because he comes from a unique background.
I have just never seen from a professional investor.
His initial goal was to become the general manager of a professional basketball franchise.
He scouted for one of the best run organizations in all of sports, the San Antonio Spurs.
While there he learned how to scout for talent in hidden places.
He also discovered that while it can definitely be harder to find talent in the harder to find pool of the later rounds of the draft, it was still possible to locate winners that other scouts often overlooked.
You can probably already see the parallels between this and value investing.
Value investing is about finding excellent investment opportunities where nobody else is looking.
Adam has used his knowledge to help find some exceptional investments.
It all starts with micro caps.
This is an area in the market with very few eyes on it precisely because many funds simply can't invest in it.
Once Adam identifies an interesting business, he'll then go deep into learning more about management.
We'll go over why Adam places such a significant emphasis on management.
Hint it was due to one of the biggest investment mistakes he ever made, which we'll also cover in depth.
Another competitive advantage Adam has observed is his ability to make his investing process as labor intensive as possible.
He's learned that doing the work that very few others are unwilling to do will reveal some incredible investment opportunities that are unknown to the investment community.