Richard de Lisle, founder of De Lisle Partners, has significantly outperformed US equity markets over the last 27 years by investing in US small-cap value stocks.  We discuss what value investing means to Richard, his focus on themes and the advantages of taking a sociological perspective.  We also explore the current environment, Richard’s investments in primary producers and why investing is the greatest game.

Show notes:
[1:05 ] Richard talks about how his father’s misfortune inspired him to start investing
[3:09 ] Don’t follow others as experts can be self-serving
[4:00 ] Richard’s career on the sell-side
[7:01 ] Equities were an unloved asset class in the 1970’s and early eighties
[8:18 ] Getting hooked on the American market’s intricacies
[9:13 ] Transitioning from the sell-side to the buy-side
[12:12 ] Why Richard focuses on US small cap value
[13:26 ] Small cap value’s outperformance between 1975 and 1983
[14:38 ] Ducking and weaving in difficult environments
[16:25 ] Taking a top down approach
[17:48 ] There is value in the least worst
[18:40 ] Looking backwards not forwards
[20:18 ] Identifying investment themes
[23:05 ] People often underestimate that value stocks can become growth stocks
[24:02 ] Reading broadly and taking a sociological perspective
[24:39 ] The advantage of being detached
[25:39 ] Investing is the greatest game
[26:51 ] Investing in primary producers in an inflationary environment
[29:46 ] Complacency around wage inflation
[31:21 ] Short duration stocks
[33:05 ] Work out what you want and set a plan to achieve it