Interview with Ian Cassel of MicroCapClub

I became a twitter follower of Ian last year and have enjoyed interacting with him on that platform, and through email over the last few months.

Ian runs MicroCapClub in the U.S — a forum meant for microcap value investors. Over the months, I have enjoyed reading up the materials posted on that site. But even more interesting has been receiving Ian’s wisdom through his wonderful tweets. Here are some of them:

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These are just some of Ian’s tweets that I loved. There are dozens of others. Follow him on twitter and learn from his wisdom and experience.

I am overwhelmingly in sync with Ian’s thoughts on investing, some of which are expressed in his tweets above.

A few weeks ago, Ian persuaded me to answer a few questions for an interview which you can read from here.


9 thoughts on “Interview with Ian Cassel of MicroCapClub”

  1. Sir, you continue to inspire me each time I read about you. I must have read your 2004 email at least 50 times up to now. I have thoroughly enjoyed reading this interview of yours with Ian. Pearls of wisdom as always! Thanks a lot for sharing your experiences.

    Special thanks to Ian Cassel for taking this up! 🙂

  2. Thank you Professor for sharing your knowledge and your new ‘finds’ not necessarily stocks!…Thanks,Ganesh

  3. Great interview, Professor Bakshi! Thanks for sharing your wealth of knowledge.

    I had a question. Your moats approach to investing seems to far outperform the general Indian markets. However US-based moats investors seem to enjoy much smaller performance differentials. Agree / disagree, and do you have any idea why?

  4. Dear Sir,

    Hope you are well. Thanks very much for providing your invaluable insights. I am sure you mustn’t be remembering me but I am your ex-student from MDI. After reading your interview, i would like to clarify few doubts from you so requesting you to please take sometime out and address these:

    1) Extended Valuation: You have mentioned it as one of the reason of selling the stock in your portfolio. Does extended valuation means the valuations at which your expected return based on your earnings growth expectations & an exit multiple of 20x becomes less than the bond yield (i.e. 10%)? If it is true then should we also not look at the end market growth potential of the company and if it is very high then probably taking an exit multiple of 20x becomes a conservative assumption?

    2) Financial Independence: You have mentioned Financial independence as a stage when money works for you and you don’t need to work for money. Do you have a quantitative definition of it in mind like when your income from multiple sources (like div., interest, rent etc.) covers annual expenses or something in terms of networth as a multiple of annual expenses?

    3) Float: You have advised using floats once we have gain sufficient confidence. I am just trying to understand if one has attained financial independence then why he/she will want to sacrifice the autonomy by being answerable to the clients every quarter/ regular intervals.


  5. Sir,
    I am one of your students from the class of 2003. It was extremely enlightening to read your interview. I read it many times. I do have a question. Why do you suggest that we create a float and invest it? Wouldn’t that be riskier as we now have the added pressure of having to answer to the investors, which in turn would distract us from the process?

  6. Sir,
    a 2nd question. What is your thought process is becoming a fund manager? My assumption is that as a Private Investor (if that is the right term) you had the liberty to explore which gets curtailed as a fund manager. I hope I didn’t offend you with my question.

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