Show Notes
Small industrials have fallen more than 20% from their highs, but Chris Stott thinks the best buying opportunity is still ahead. So what would convince him it’s time to buy? In this episode of The Rules of Investing, 1851 Capital’s CIO explains the signals he’s watching, why he’s sold his AI infrastructure winners, and where he’s finding value while he waits. He also makes the case for Bapcor, his largest holding, and reveals the stock he’d own if the market closed for five years. Thanks to our Sponsor AlphaSenseThis latest episode is brought to you by AlphaSense.Discover decision-grade AI now - Visit alpha-sense.com/livewire to get started. Chapters:
00:00 – Launching 1851 and managing the fund’s size 07:28 – Why Stott has sold his AI infrastructure winners 12:18 – Is the small-cap buying opportunity still ahead? 17:25 – The signals that could mark a turning point 20:42 – Finding growth and the case for COG Financial 24:35 – Bapcor and the turnaround thesis 31:24 – The shrinking pool of listed companies 35:36 – Tracking crowding and revisiting GDG 40:29 – Two recent IPOs Stott likes 42:35 – The lesson from selling Afterpay 44:06 – What investors may be underestimating 45:51 – A stock to own for five years
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