Stock Picker

I first came across Ian Cassel on a recent Richer, Wiser, Happier podcast, which is always a good start. I subsequently heard him interviewed on Excess Returns and then again on The Acquirers Podcast. It was during the latter that I realised I'd actually heard him a few times before, but this latest round of appearances was to promote his new book, Stock Picker.

Whilst Cassel's focus is on microcap investing, this is really an investing guide wrapped inside a thoughtful memoir. Many of the lessons and insights are just as relevant to general investors as they are to those specifically hunting for opportunities in microcaps.

What makes the book particularly good is that Cassel extends beyond just investing theory. He shares a lot about his own journey, including the inevitable highs and lows that I suspect will resonate with many readers with their own investing history.

There's the feeling of invincibility if you happen to enter the market at a time when in all truth a monkey could probably pick winners. Then there are the periods where remaining patient in your thesis means watching a stock seemingly do nothing as the market buyers in general clearly disagree, only for that stagnation to eventually be followed by a burst of bullish price action.

It's these experiences that move this into a memoir that’s relatable rather than simply an instructional read.

Whilst some of the lessons are specific to microcap investing, particularly around what Cassel considers the sweet spot for holding periods, I'd estimate around 70% of the book is applicable to almost any long-term investor.

Importantly, Cassel writes for investors whose objective is ultimately to maximise returns rather than simply adhere rigidly to a particular investing philosophy. He challenges the idea of buying with the intention of holding forever, instead advocating holding for as long as the underlying thesis continues to justify it and being willing to take profits when circumstances change.

That might sound like common sense, but we live in an era where investors can easily find themselves copying principles associated with some of the greats without stopping to question whether those principles actually make sense for their own strategy, circumstances or objectives.

Candid, honest, insightful and relatable aren't necessarily the first words you'd expect to associate with a book called Stock Picker, but they all fit in this instance. It's an easy book to listen to and one you can comfortably finish in one or two sittings, whilst still containing enough substance to make you want to revisit it.

An excellent addition to any serious investor's library, and even more so if you're interested in moving beyond mainstream stocks and exploring the world of microcaps in search of the smaller companies capable of becoming considerably larger ones.

Who's It For?

Unsurprisingly given the title, this is primarily a book for investors. Microcap investors will naturally get the most from it, but there's plenty here for anyone focused on long-term stock picking.

This isn't a book about trading, nor is it trying to convince someone with no interest in investing to suddenly become a stock picker.

For those already on that journey though, I can see it becoming the kind of book you return to at different stages of your own development. I certainly expect to revisit it, if nothing else for the reassurance that many of the experiences and emotions encountered along the way aren't particularly unique at all.