Episode 24 – Pender Process – Avoiding Value Traps by Looking for Catalysts
September 12, 2019

Episode 24 – Pender Process – Avoiding Value Traps by Looking for Catalysts

Felix Narhi is joined by David Barr to discuss how Pender minimizes the odds of finding ourselves stuck in a value trap by looking for catalysts in advance.

Subtitle: Begin with the end in mind.

Felix Narhi, Chief Investment Officer and Portfolio Manager at Pender is joined by President and Portfolio Manager David Barr 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.

Key Takeaways

[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.

Sign Up To Listen To The Latest Podcast

Join Our Podcast Community

Access our podcasts a week ahead of others. We will release and host podcasts on our website before uploading them to other channels and you can download or listen to them right here.

Can we use this information to add you to our monthly email alert?

Yes