Episode 18: Lessons in Options Trading, Credit Markets and Balance Sheets w/ Fil Zucchi

Better late than never, right?

On Episode 18 of the Value Hive Podcast I chat with Fil Zucchi. Fil is an independent options trader and former bankruptcy lawyer. I first met Fil at last years ValueX Vail Investors Conference.

Fil brings a unique look to equity and credit markets. He expresses his thoughts and opinions through options trading. He’s a market veteran with over 30 years of experience.

Here’s the crazy part: in 30 years of trading, Fil’s never seen markets like the one we’re in now.

We dive deep into options trading, balance sheets, bond markets and what to look for in troubled companies. Fil provides insight into why credit markets lead equity markets, and how equity investors can leverage bond markets to gain additional insight.

Podcast Timeline:

  • [0:00-5:00] Introduction and Background
  • [6:00-11:00] Why Credit Leads Equity
  • [12:00-20:00] Understanding Capital Flows in Credit Markets
  • [21:00-26:00] Current State of the Credit Markets
  • [27:00-38:00] Deep Dive into Options Trading
  • [39:00-49:00] LEAPS & Using Options on Value Stocks
  • [50:00-58:00] Lessons Learned From Best & Worst Options Trades
  • [59:00 – 109:00] Why Equity Investors Should Follow Bond Markets
  • [110:00 – 113:00] Lessons Learned from Days as Bankruptcy Lawyer
  • [end] Concluding Thoughts & Last Question

If you want to learn more about Fil, or follow his thoughts, check him out on Twitter @FZucchi

Thanks for listening. If you like what we’re doing, please leave us a rating and review on Apple Podcasts.

Episode 17: The Power of Owner Operators with Chris Mayer, Woodlock House Family Capital

Chris Mayer is an author and fund manager. He’s written three books and in 2018, started managing Woodlock House Family Capital.

Many investors have heard of Chris’ name from his (now cult-following phenomenon) book, 100-Baggers. In that book, Chris dives into common characteristics of companies that returned 100-to-1 for their investors. Some of those characteristics include:

  • Revenue and earnings growth
  • Founder-led or owner-operator at the helm
  • Tremendous drawdowns in share price

During the podcast, we chat about the following topics:

  • What Chris wished he knew when he started investing
  • Why Chris prefers owner-operators
  • What gives Chris his edge in the markets
  • What are shared qualities of some of Chris’ biggest winners
  • Why Chris loves markets and investing

and more!

If you’re interested in learning more about Chris, check out his books:

Also you can find him on Twitter and his blog.

Podcast Time-line:

  • [0:00-10:00] What Chris Wish He Knew When He Started Investing
  • [11:00-19:00] Process over Outcome
  • [19:30-27:00] Qualities of an Owner-Operator
  • [28:00-37:00] Why Chris is a Global Investor
  • [38:00-49:00] How To Sell
  • [50:00-52:00] What is Chris’ Biggest Weakness
  • [53:00-58:00] Owning A Few Great Businesses
  • [59:00-67:00] What Gives Chris His Edge in Markets
  • [67:30-End] Closing Questions

Episode 16: Reminiscences of a Deep Value Investor, ValueStockGeek

ValueStockGeek runs a deep-value investing blog and is active on Twitter. I originally found him when setting up my own investment blog.

We’ve ping-ponged back and forth with times to chat and call, and after a few months we finally synched up.

I’m excited to have ValueStockGeek on the podcast for a few reasons:

We share similar investment styles and philosophies His transparency is refreshing He offers unique insights into macro themes as well as micro, company-specific write-ups

During the chat we discuss the following:

  • [2:00-10:00] Introduction to ValueStockGeek
  • [11:00-14:30] Maintaining Rationality During Volatility
  • [15:00-21:00] Recession Talk
  • [21:00-31:00] Why Stocks Are Still Expensive
  • [32:00-50:00] ValueStockGeek’s Lazy Portfolio
  • [51:00-57:00] ValueStockGeek’s Investment Process
  • [60:00-71:00] How ValueStockGeek Values Companies
  • [72:00-End] Final Comments & Last Question

If you want to learn more about ValueStockGeek, check out his website and Twitter (links below):

Episode 15: Buying A Job & Creating A Platform with Nick Haschka, The Wright Gardner & Cub Investments

Nick’s journey towards small business ownership was a winding road. After graduating from MIT, he went to work for McKinsey. After consulting, he found a passion in clean tech and clean energy with NRG Group, leading their high-tech ventures program.

It was around this time Nick decided he wanted to own a small business. He stressed the importance of living a balanced life, and forming your business around the life you want to live. Not the other way around.

Nick found The Wright Gardner after a month of searching. After becoming Co-Owner he proceeded to do five bolt-on acquisitions to grow the company.

Realizing his passion for investments and acquiring businesses, Nick set up Cub Investments. Cub Investments is a small private equity company whose goal is to buy small, local businesses and hold them forever.

I really enjoyed my chat with Nick. His sense on balance between work and life was refreshing. And you can ALWAYS learn something from talking to an MIT grad. I know you’ll learn a lot too.

  • [0:00-5:00] Introduction & Background on Nick
  • [12:00-16:00 ] Nick’s Passion for Clean Energy
  • [18:30 – 23:00] Why Nick Decided To Buy A Small Business
  • [26:00-35:00] How Nick Found The Wright Gardener & First Steps In Ownership
  • [40:00-45:00] Why It’s Important to Plan For Change
  • [56:00-64:00] Why Nick Started Cub Investments & His Investment Criteria
  • [65:00-end] Closing Thoughts
Here’s where you can find Nick:

Other things Nick referenced during the podcast:

 

Episode 14: High Growth, High Quality Businesses – Ryan Reeves, InvestingCity.org

Ryan Reeves is the founder/CEO of InvestingCity.org. InvestingCity.org was built around one idea: save time and boost returns. Ryan started the business in 2016 after writing a newsletter for his friends, and realizing the gap in solid, financial analysis for the every day investor. Reeves’ passion for investing began early, around the age of 12. After graduating Pepperdine, he worked at Morgan Stanley, The Motley Fool and Seeking Alpha.

I thoroughly enjoyed my conversation with Ryan. He’s humble, honest and full of compounded investing knowledge.

Here’s what we discussed:

  • [0-14min] – Ryan’s background
  • [15:00] – How Ryan Started InvestingCity.org
  • [25:00] – The State of Financial Education in America
  • [30:00] – Ryan’s Research Process
  • [50:00] – Ryan’s Thoughts on Charlie Munger’s DJO Meeting
  • [53:00] – How Ryan Thinks About Valuation
  • [56:00] – Ryan’s Worst Investment
  • [60:00] – Costco’s Business Model

If you want to learn more about Ryan (or InvestingCity), check out the following:

If you like what we’re doing, leave us a rating and review on Apple Podcasts.

Episode 13: Deep Value Investing in LA Real Estate, Moses Kagan of AdaptiveRealty.com

I had the privilege to chat with Moses Kagan, founder of Adaptive Realty. I call Moses a Deep Value Investor in LA Real Estate because that’s exactly what he does.

Moses finds beaten-down, ugly, overlooked buildings in Los Angeles, CA. He buys them, does a complete gut and renovation, and rents them out at attractive rates of return for his investors.

While not an investor in public equities, Moses’ analysis of cash flows, determination to find great deals, and knowledge of the power of relationships applies to any investment field.

During the podcast we dive into the following topics:

  • Who is Moses Kagan? [0:00 – 6:00]
  • Why Moses Hated Working For Someone Else [16:00]
  • Why Moses Chose Real Estate [28:00]
  • Moses’ First Few Deals [35:00]
  • The Power of Long-Term Relationships [60:00]
  • How To Quickly Value an Apartment Building [85:00]

If you want to learn more about Moses, check out these links:

If you liked the episode and like what we’re doing on the show, please leave us a rating and review on Apple Podcasts. It goes a long way in helping spread the word about The Value Hive Podcast.

Episode 12: Building A Great Product w/ Robert Koyfman, Founder of Koyfin.com

Rob Koyfman is the founder and CEO of Koyfin.com. Rob has a tremendous background in the world of finance, investment and trading. He’s a CFA Charterholder and former Goldman Sachs VP.

In 2015 Rob left the corporate world to start Koyfin.com. A one man operation. Rob grew Koyfin into a fast-growing financial analysis website. Rob’s vision for Koyfin is simple. He wants to provide better analytics for investors.

During the podcast we chat about the following:

First 15 minutes …

  • Rob’s background and experience at Goldman Sachs
  • What Rob learned while working for PMs and CIOs

15 minute – 30 minute mark …

  • Why Rob started Koyfin
  • The importance of clean UI

30 minute – 1 hour mark …

  • Future Aspirations of Koyfin
  • Why Rob is passionate about good looking charts

and more!

If you want more info on Koyfin, check out their website: www.koyfin.com

You can also follow Rob on twitter @KoyfinCharts or email him at rob@koyfin.com.

If you like what we’re doing, please take the time to leave a rating and review on Apple Podcasts. It helps spread the word about the show, and helps us keep great guests on the platform. You can find the link here.

Episode 11 – Long-Term & Differentiated Thinking with Clifford Sosin, CAS Investment Partners

Clifford Sosin runs CAS Investment Partners. The fund is a value oriented partnership focusing on investing in great businesses at discounted prices to their future value.

Here’s what we talk about in today’s podcast:

  • Cliff’s early days at UBS
  • The genius of the bankruptcy system
  • How Cliff finds ideas
  • Mental models
  • Specialty Retail Stores: Party City (PRTY) and At Home (HOME)
  • How to fix the banking system as we know it

The conversation covers a wide array of topics and was one of our longer episodes. I hope you find Cliff’s insights as interesting as I did. For disclosure purposes, Cliff is long PRTY and HOME.

Make sure you follow him on Twitter @CliffordSosin

Also, if you’re interested in his co-authored white-paper on global banking, check it out here.

Episode 10: Tier-1 Micro Caps with Maj Soueidan of GeoInvesting.com

Maj Soueidan is the Co-Founder of GeoInvesting.com. GeoInvesting navigates investment risk by interviewing company management, dissecting conference calls, interacting with our wide network of investors and scouring financial documents for hidden clues. GeoInvesting provides quick, concise and efficient research instead of hundreds of pages of financial jargon.

Maj and his team focus on micro cap stocks. If you want to know why, I highly encourage you to read this article.

When they’re not looking for Tier-1 micro-caps, Maj and his team investigate potential Chinese frauds listed on US exchanges.

Maj and I chatted about various topics, including:

  • Maj’s background and how he started investing
  • GeoInvesting’s 6 Core Principles
  • What makes GeoInvesting different
  • What types of companies Maj profiles on GeoInvesting
  • Why micro-caps are last place for informational edge
  • What the next 12 years might look like for GeoInvesting

and more!

Make sure to follow Maj on twitter @majgeoinvesting

Check out his website if you want to learn more about GeoInvesting: GeoInvesting.com

Also, if you like what we’re doing, subscribe and leave a rating/comment on Apple Podcasts. It goes a long way in helping spread the word about our podcast.

Episode 9: OTC Adventures with Dave Waters, Alluvial Capital

Dave Waters, CFA is Alluvial’s managing member. Since launching Alluvial in 2014, Mr. Waters has focused on delivering exceptional results for Alluvial’s investors. Dave also runs OTCAdventures.com.

I first found Dave after reading a write-up from his blog. This led to a Twitter follow, and then frequent, spam-like messaging asking Dave about various OTC stock ideas.

Dave is unique in his investment approach. He searches the darkest, most illiquid corners of the markets in his search for great, obscure companies.

Dave and I cover a lot of ground in this 1 hour 30 minute conversation. Topics include:

Personal background and blog Pitching his fund to prospective LPs Dave’s Investment Process Immediate Red Flags in Companies Why Illiquid Stocks?  Weird stories about dark, OTC companies Why Dave’s strategy works for smaller accounts The benefits of publishing ideas online

and more!

If you like what we’re doing, hit that subscribe button and leave a review on Apple Podcasts. It goes a long way in helping spread the word about the Value Hive movement.

You can find Dave on Twitter: @alluvialcapital

You can also find information on his Fund at his website, alluvialcapital.com

Finally, check out his blog, OTCAdventures.com