Planet MicroCap Podcast | MicroCap Investing Strategies

In this episode of the Planet MicroCap Podcast, I spoke with Lucas Sacerdote, Founder and CIO of Valora Investment Group, for his first-ever podcast appearance.

We break down his focus on real, tangible assets trading at steep discounts to book value, why he believes the technology frontier is currently being bottlenecked by the physical frontier, and how he thinks about building concentrated positions in energy and infrastructure names. We get into his biggest current position, Canadian Solar, why he thinks the hate on solar is overblown, and how he differentiates between value traps and genuine opportunity.

We also touch on EOS Energy, LibertyStream, Comstock, Adecoagro, and his broader thesis on Argentina. We mention several companies during this conversation, and Lucas is a current shareholder in Canadian Solar, EOS Energy, LibertyStream, Comstock, and Adecoagro.

For more information about Valora Investment Group, please visit: https://www.valoraig.com/ 

Chapters

00:00 Introduction to Lucas Sacerdote and his background
01:58 Lucas's investment philosophy and focus on tangible assets
03:58 His journey from KIG Investment Management to founding Ballora
08:01 Argentina's capital markets ecosystem and opportunities
12:05 Filtering process from 53,000 companies to 50 stocks
19:00 Case study: Canadian Solar and due diligence process
23:01 Managing conviction and position sizing in microcap investing
29:53 Market run-ups, valuation, and behavioral biases
37:07 Lessons from 2022 and downside protection
39:58 Argentina’s macro outlook and investment thesis
44:09 Advice for young investors and where to follow Lucas

Planet Microcap hosts the highest quality in-person microcap events in North America. The mission is to bring the best microcap investors, companies, and allocators together to gather, connect, and grow.; visit https://planetmicrocap.com/ to learn more about our Las Vegas and Toronto events.

This presentation is for informational purposes only and should not be construed as a recommendation to purchase or sell any security referenced herein. Planet MicroCap Holdings LLC and MicroCapClub LLC (collectively, “we” or “our”) are not licensed brokers nor registered investment advisors. We, our partners, contractors, members, subscribers, guests, or affiliates may or may not hold positions in one or more of the securities mentioned in this presentation and may trade in such securities at any time. We may have received cash compensation from one or more participants for presenting at past, present, or future events. We recommend you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this presentation.

In this episode of the Planet MicroCap Podcast, I spoke with Tim Heitman - full-time private investor, MicroCap Club member, and longtime Dallas Stars team photographer - for a wide-ranging conversation that started at the World Cup and ended up deep in the weeds of microcap due diligence.

We break down how his time at Fidelity during the Lynch era and later at David Tice's Behind the Numbers shaped a simple but durable framework: understand the business first, the numbers take care of themselves. We get into his approach to management interviews - including why he tells CEOs to treat him like a new board member, how he uses Claude to grade his own interview performance, and why asking the jerk question is sometimes the most important thing you can do.

We also cover why obsessing over models is the most common mistake smart new investors make, and what sports photography taught him about controlling emotions under pressure. We mention several companies during this conversation, and Tim is a current shareholder in Mama Creations, Noble Romans, and Innovative Foods.

For more information about Tim and Investing 501 Newsletter, please visit: https://investing501.substack.com/

Chapters:

00:00 Introduction and guest background
39:28 The Role of Management Changes and Management Quality
40:36 Case Study: Mama Creations and Management Turnarounds
41:42 Assessing Management Genuineness and Track Record
43:10 The Importance of Asking Hard Questions
44:28 Using AI to Prepare for Management Calls
45:50 Techniques from Negotiation Expert Chris Voss
46:51 Analyzing Conference Call Transcripts with AI
48:11 Grading Your Own Interview Performance
50:19 Post-Interview Follow-up and Deepening Insights
51:47 Reflections on Microcap Investment Strategies
52:03 The Evolution of Microcap Information Access
54:01 The Power of Information Arbitrage in Microcaps
55:29 Advice for Young Microcap Investors
56:35 Common Mistakes in Microcap Analysis
57:16 Building Better Models and Valuations
58:46 Controlling Emotions and Having a Process
01:00:07 Rethinking Assumptions About Boards and Management
01:01:27 How to Approach Management as a Potential Board Member
01:03:28 Shifting Focus from Pitch to Strategy
01:04:55 Using Questions to Uncover Management Incentives
01:07:22 Managing Cultural Change in Microcap Companies
01:08:20 Advice for Younger Investors and Analyzing Management
01:09:40 Leveraging Conference Decks and Transcripts for Insights
01:11:36 Controlling Emotions and Having a Clear Plan
01:12:17 Interrelation of Photography and Investing Mindsets
01:12:48 The Importance of Basic Accounting and Behavioral Finance
01:13:17 Controlling Emotions and Consistent Process in Investing
01:14:05 Where to Follow Tim Heitman and Engage

Planet Microcap hosts the highest quality in-person microcap events in North America. The mission is to bring the best microcap investors, companies, and allocators together to gather, connect, and grow.; visit https://planetmicrocap.com/ to learn more about our Las Vegas and Toronto events.

This presentation is for informational purposes only and should not be construed as a recommendation to purchase or sell any security referenced herein. Planet MicroCap Holdings LLC and MicroCapClub LLC (collectively, “we” or “our”) are not licensed brokers nor registered investment advisors. We, our partners, contractors, members, subscribers, guests, or affiliates may or may not hold positions in one or more of the securities mentioned in this presentation and may trade in such securities at any time. We may have received cash compensation from one or more participants for presenting at past, present, or future events. We recommend you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this presentation.

In this episode of the Planet MicroCap Podcast, I spoke with Shawn Behnam and Gabriel Etessami, Co-Founders of Garden Capital Management, for their first-ever investing podcast appearance.

We break down their S-curve framework for identifying technologies at the early stages of adoption, how they think about position sizing when the outcome is clear but the timing isn't, and why they run a concentrated portfolio in a space where most people default to diversification. We also get into their current conviction on energy infrastructure as an AI tailwind, a deep look at Joby Aviation and the eVTOL (electric vertical takeoff and landing) space, and where they think market consensus is simply wrong right now.

For more information about Garden Capital Management, please visit: https://www.gardencapitalmanagement.com/

Chapters:

00:00 Introduction to Garden Capital and the Podcast
02:06 Backgrounds of Shawn and Gab and their investment philosophies
06:55 The origin of their interest in equity analysis and early-stage tech
15:06 Understanding the S-curve and its significance in investing
21:10 Differentiating real inflection points from false signals
27:48 Managing uncertainty and sizing positions in long-term bets
32:10 Focus on smaller companies and the investment universe
38:09 Emerging themes like energy demand and quantum computing
41:51 Market consensus and identifying mispriced opportunities
49:59 The role of social media and fan engagement in investing
54:51 The importance of management quality and team alignment
01:01:52 Key experiences shaping their investment approach
01:02:53 How to find undervalued companies on the S-curve
01:04:11 Closing thoughts and contact information for Garden Capital

Planet Microcap hosts the highest quality in-person microcap events in North America. The mission is to bring the best microcap investors, companies, and allocators together to gather, connect, and grow.; visit https://planetmicrocap.com/ to learn more about our Las Vegas and Toronto events.

This presentation is for informational purposes only and should not be construed as a recommendation to purchase or sell any security referenced herein. Planet MicroCap Holdings LLC and MicroCapClub LLC (collectively, “we” or “our”) are not licensed brokers nor registered investment advisors. We, our partners, contractors, members, subscribers, guests, or affiliates may or may not hold positions in one or more of the securities mentioned in this presentation and may trade in such securities at any time. We may have received cash compensation from one or more participants for presenting at past, present, or future events. We recommend you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this presentation.

In this episode of the Planet MicroCap Podcast, I spoke with Hugo Navarro - Founder and Editor of the Undervalued and Undercovered newsletter on Substack and fund advisor at PEQUITY U&U Global Opportunities - to dig into how a 19-year-old from Spain built a six-figure research business and a fund advisory role by going where almost no one else was looking.

We break down his process for finding names that look bad on the surface but are cheap for the wrong reasons, how he thinks about separating a real catalyst from a story that just sounds good, and a hard lesson from Intellego that taught him when a sniff test beats 100 hours of due diligence. We also get into two current ideas he's watching closely.

For more information about the Undervalued and Undercovered newsletter, please visit: https://smallcaptreasures.substack.com/

Chapters:

00:00 Introduction and guest background
02:00 Hugo's journey from Spain to microcap investing
04:02 How Hugo started his research newsletter
06:06 The success and growth of Hugo's research business
07:54 Hugo's investment philosophy and approach
10:56 Finding ideas through screening and networking
14:00 Deep dive research process and thesis validation
18:13 Examples of catalysts and undervalued opportunities
23:06 Lessons from a failed investment in Intellego
25:59 Separating real catalysts from stories
28:57 Passing on ideas and risk management
32:54 Influence of investor interactions and experience
35:04 Hugo's future goals and investment outlook

Planet Microcap hosts the highest quality in-person microcap events in North America. The mission is to bring the best microcap investors, companies, and allocators together to gather, connect, and grow.; visit https://planetmicrocap.com/ to learn more about our Las Vegas and Toronto events.

This presentation is for informational purposes only and should not be construed as a recommendation to purchase or sell any security referenced herein. Planet MicroCap Holdings LLC and MicroCapClub LLC (collectively, “we” or “our”) are not licensed brokers nor registered investment advisors. We, our partners, contractors, members, subscribers, guests, or affiliates may or may not hold positions in one or more of the securities mentioned in this presentation and may trade in such securities at any time. We may have received cash compensation from one or more participants for presenting at past, present, or future events. We recommend you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this presentation.

In this episode of the Planet MicroCap Podcast, recorded a couple weeks ahead of Planet MicroCap Las Vegas, I spoke with Rick Rule - founder and CEO of Rule Investment Media and co-founder of Battle Bank - for a wide-ranging conversation on natural resources, gold, and where Rick thinks the smart money is quietly moving next.

A note worth flagging before you listen: when we recorded this, Rick called gold north of $3,000 and said we were 20 years into a 30-year bull market. Gold has since crossed $4,000 - make of that what you will. We break down why Rick thinks the bull run still has a decade left, why he trimmed his junior miners and redeployed into royalty streamers, what he considers the most misread commodity setup right now, and why uranium's fundamental case has quietly changed in a way most investors still haven't caught up to. We also get into rare earths, copper, and his new venture, Battle Bank.

For more information about Rule Investment Media, please visit: https://www.ruleinvestmentmedia.com/

Chapters:

00:00 Introduction and Rick Rule's Market Perspective
00:21 Rick Rule's Background and Investment Philosophy
01:24 Gold Price Surge and Market Cycles
03:30 Why Generalist Capital Is Still Hesitant in Juniors
04:56 The Long-Term Bull Market in Gold and Resources
06:18 US Debt, Inflation, and Gold's Future
08:44 The Role of Political Risk in Resource Investing
23:55 Uranium's Resurgence and Energy Security
28:16 Rare Earths: Myths, Realities, and Opportunities
34:14 AI and Its Impact on Commodities and Resources
38:59 Introduction to Battle Bank and Its Unique Features
43:54 What Could Make Rick Rule Bearish on Gold
45:34 The Future of US Debt and Currency Deterioration
46:38 How to Connect with Rick Rule and Resources

Planet Microcap hosts the highest quality in-person microcap events in North America. The mission is to bring the best microcap investors, companies, and allocators together to gather, connect, and grow.; visit https://planetmicrocap.com/ to learn more about our Las Vegas and Toronto events.

This presentation is for informational purposes only and should not be construed as a recommendation to purchase or sell any security referenced herein. Planet MicroCap Holdings LLC and MicroCapClub LLC (collectively, “we” or “our”) are not licensed brokers nor registered investment advisors. We, our partners, contractors, members, subscribers, guests, or affiliates may or may not hold positions in one or more of the securities mentioned in this presentation and may trade in such securities at any time. We may have received cash compensation from one or more participants for presenting at past, present, or future events. We recommend you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this presentation.