Join Duc Ong, as he chats with Marius Skonieczny, as they chat about why Marius switched from real estate to stocks. Marius shares that since he finished college, he immediately came into real estate investing, even learning how to appraise before investing, and that’s while he’s also studying the stock market, reading both Poor Dad Rich Dad while digesting the works of Warren Buffet. In this episode, Marius will be sharing what he knows about microcap investing. He shares what microcap means and what makes it more personal rather than investing in big companies like Apple, Microsoft, Tesla, etc. He points out the fact that with microcap companies, the CEOs themselves will be the ones explaining the business to an investor which gives investors a better idea of what they’re getting into and have a more personal connection with the company. More on this notion in this episode so be sure to stay tuned!
Understanding MicroCap:
Basically, a company that has a market cap or equity of less than 100 Million, as shared by Marius. He says that the advantage of investing in a microcap company is that they are not being scrutinized by analysts, he can do his own research by contacting customers, former and current employees to get a better point-of-view on what the company can do. He shares more on this including his most successful trade which happened because no one was paying attention to how much the company was growing.
Marius also shares different strategies for handling microcaps. He shares his past experiences about how microcaps suddenly grew in value because no one is paying attention to them that much and most of which are private companies as well which further takes them away from public eye. He also shares that technical analysis of a microcap company is not all that advisable since they do not have as much liquidation data as bigger comapnies. Further information as well is included about Marius’ exit strategy and how he handles inflation rates.
About Marius Skonieczny:
Mariusz Skonieczny is a professional investor and the founder of Classic Value Investors, MicroCap Explosions and creator of Value Investing University. Mariusz graduated from Indiana University in 2003 with a finance degree. From 2003 to 2008, he was in the residential and commercial real estate industry as an appraiser and broker. During the 2008/2009 financial crisis, he made the courageous decision to leave the industry and start Classic Value Investors. He has been investing in the stock market since 2008, starting with only $10,000, 10 years later he reached $1.1 million. By March of 2021, his accounts reached over $4 million! He is also the author of 11 books on investing.
Outline of the episode:
- [00:56] Marius’ switch from real estate to stocks
- [03:39] Understandingmicrocap
- [09:20] Competitive advantage in microcap investing
- [13:29] Most successful trade Marius did and the process of selecting
- [17:21] How to analyze microcap companies and the exit strategy
- [21:36] Marius’ sale and inflation strategy for microcaps
- [26:54] Fire round with Marius
- And many more!
Connect with Marius Skonieczny:
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This is for busy professionals who are looking for financial freedom through passive income, with a focus on cashflow assets in Multifamily Real Estate. We will be covering a variety of topics such as buying, managing, and selling real estate assets, specifically apartments.
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