Begin with the end in mind.
Felix Narhi and David Barr sit down to discuss how Pender minimizes the odds of finding ourselves stuck in a value trap by looking for catalysts in advance. They discuss the criteria that they look for in small and micro-cap stock picking and Pender’s long history of identifying catalysts. They also discuss which books David has been reading lately.
[01:29]
David shares what the Pender equity team looks for in small and micro-cap stock picking.
[03:10]
Felix asks David what could make a bad initial investment worse.
[05:17]
David explains how a catalyst forms between two willing participants, the buyer and the seller.
[07:45]
David explains the three main buckets of potential buyers.
[09:33]
Felix asks David to share which catalyst situation has been most common over his career.
[13:26]
David explains a situation where he implements the practice of “trusting but verifying”.
[17:29]
Felix asks David what his thoughts are on the fourth and final catalyst.
[19:25]
David shares which book is currently on his night table.
