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Today’s guest is Jeremy Raper. Jeremy runs RaperCapital.com and recently launched a premium investment research service.
Jeremy looks at public markets through the eyes of a credit analyst. This gives him a unique perception on markets, companies and capital structure situations. He’s not afraid to invest all along the capital structure, and often writes about unique long/short bond opportunities.
Before launching his premium research service, Jeremy worked over a decade on both the buy and sell side research departments. He even spent time in Japan doing equity/credit analysis.
During our chat we talk about Jeremy’s investment process, the edges gained while living/working in Japan, how he finds ideas and how he thinks about valuation/risk.
Here’s the podcast outline:
- [1:10] – Lessons From Playing Tennis
- [3:00] How Jeremy Got Started In Markets
- [6:15] Lessons From The Buy & Sell Side
- [8:35] Jeremy’s First Taste in Credit Instruments
- [26:00] Jeremy’s Four Pillars of Investing
- [32:12] Portfolio Construction and Allocation
- [35:24] How To Extract Value From Net Nets
- [39:51] The Pendulum of Shareholder vs. Customer Focus
- [43:42] Returns ON Capital vs. Return OF Capital
- [56:00] How To Avoid Value Traps
- [60:00] Sustainable Free Cash Flow Definitions
- [69:00] Jeremy’s Three Buckets of Idea
- [74:28] How To Prioritize New Investment Ideas
- [80:00] Kill Your Ideas Quickly
- [84:33] If The Price Is Right, Look Deeper (CLMT)
- [93:18] Real-Time Example of Credit Analysis (361 Degrees)
- [105:46] Finding The Main Drivers of an Investment
- [108:19] Raper Capital Premium — What To Expect
- [118:28] Closing Questions
Student of value investing for over 13 years spending his time in small to micro-cap companies, spin-offs, SPACs and deep value liquidation situations.