Thanks for the article, nice summary. Have listened to a number of YouTube/podcast that have featured Paul. He also like the company to be around 52 week high which kind of conflicts with his statement that these stocks can have 50% drawdowns. It also sounds like he turns over stocks if he find something “better” (that meets criteria). Do you run a similar criteria for your small cap list?
Nice to read a comment from another Paul Andreola fan!
I too have heard him comment on 52 weeks highs; from memory last he mentioned this he claimed it was a sign of discovery process starting kick-off, and investors starting to take notice. My personal take on this has evolved over the years; I find I would prefer 52 week highs over 52 week lows, but I now pay very little attention to it in general.
Your question on turning over the stock in your portfolio when you find something "better" is genuinely one of the hardest about investing in general. On one end, it can easily lead you to sell companies too early, before they inflect, this is a mistake I've done too many times. On the other hand, if you keep them, you risk accumulating too big a portfolio, and slowly degrade your 'alpha' over the years. So yes, it's hard. In the end, I do sell when I find something better, but I'm usually quite slow to sell in general. And certainly, I remind myself to re-read my original thesis to make sure I'm staying connected to the facts.
Anyway, long answer, but hope it helps. Keen to hear your thoughts on these too mate!
Brilliant JP, just brilliant. I have a system, but it’s mainly focused on the financials, which by definition are backward looking. Good to see some practical guerrilla tactics on where to look. Love the adaption of “blood in the streets” to “no one in the streets”
What I do like about his philosophy is that his candidates are in the early stages of profitability - this takes the ‘theoretically brilliant’ to the fledgling ‘practically possible’ - a leap many never ever make.
One matter that wasn’t answered is how quickly these ‘baggers’ come home to roost. Sadly I am not one who can wait 20 years.
Thanks for this, Damien! Love getting your comments always.
Going for profitability as a primary focus can indeed be a strong shield against downturns. The past two years have reminded us of this lesson.
You're right; even with an excellent process, quick returns are never guaranteed. Especially in the current microcap bear market, where it can seem like things are at a standstill, despite solid fundamentals.
But I'm confident you'll notch up many more wins before you call it a day :)
Thanks for the article, nice summary. Have listened to a number of YouTube/podcast that have featured Paul. He also like the company to be around 52 week high which kind of conflicts with his statement that these stocks can have 50% drawdowns. It also sounds like he turns over stocks if he find something “better” (that meets criteria). Do you run a similar criteria for your small cap list?
Nice to read a comment from another Paul Andreola fan!
I too have heard him comment on 52 weeks highs; from memory last he mentioned this he claimed it was a sign of discovery process starting kick-off, and investors starting to take notice. My personal take on this has evolved over the years; I find I would prefer 52 week highs over 52 week lows, but I now pay very little attention to it in general.
Your question on turning over the stock in your portfolio when you find something "better" is genuinely one of the hardest about investing in general. On one end, it can easily lead you to sell companies too early, before they inflect, this is a mistake I've done too many times. On the other hand, if you keep them, you risk accumulating too big a portfolio, and slowly degrade your 'alpha' over the years. So yes, it's hard. In the end, I do sell when I find something better, but I'm usually quite slow to sell in general. And certainly, I remind myself to re-read my original thesis to make sure I'm staying connected to the facts.
Anyway, long answer, but hope it helps. Keen to hear your thoughts on these too mate!
Brilliant JP, just brilliant. I have a system, but it’s mainly focused on the financials, which by definition are backward looking. Good to see some practical guerrilla tactics on where to look. Love the adaption of “blood in the streets” to “no one in the streets”
What I do like about his philosophy is that his candidates are in the early stages of profitability - this takes the ‘theoretically brilliant’ to the fledgling ‘practically possible’ - a leap many never ever make.
One matter that wasn’t answered is how quickly these ‘baggers’ come home to roost. Sadly I am not one who can wait 20 years.
Thanks for this, Damien! Love getting your comments always.
Going for profitability as a primary focus can indeed be a strong shield against downturns. The past two years have reminded us of this lesson.
You're right; even with an excellent process, quick returns are never guaranteed. Especially in the current microcap bear market, where it can seem like things are at a standstill, despite solid fundamentals.
But I'm confident you'll notch up many more wins before you call it a day :)