Top 50 Microcap Investor List: Mitchell Scott
The next feature of our Top 50 Microcap Managers list is Mitchell Scott. After graduating from the University of North Carolina’s M.B.A. program in 2008, “Mitchell Scott joined a small equity hedge fund focused on micro-cap stocks, but his goal went beyond investing: ‘I wanted to understand the inner workings of businesses and what made them successful, positioning myself to run one before too long.’
Download our feature on Mitchell Scott
Keep Your Head
At the Daily Journal Annual Meeting this week, Charlie Munger said the following:
If you’re going to invest in stocks for the long term, or real estate, of course there are going to be periods where there’s a lot of agony, and other periods where there’s a boom. I think you just have to learn to live through them. As Kipling said, treat those two imposters just the same. You have to deal with daylight and night—does that bother you very much? No. Sometimes it’s night and sometimes it’s daylight. Sometimes there’s a boom. Sometimes there’s a bust.
Both Munger and Warren Buffett have lived through temporary busts in their major investment holding, Berkshire Hathaway, Inc. Berkshire has seen it’s stock cut in half three times during their tenure, and plenty of other less severe corrections. And some of the major companies of today have seen their stock prices down even more over the last couple of decades. Could you have held onto shares of Amazon when its stock price was down over 90% from its high in the early 2000s?
When athletes get to the big moments in their careers, some rise to the challenge, and some fold. In the investing game, the same thing often happens. Some investors have the mental toughness to get through the big, volatile moments and come out the other side—while others let the pressure get to them. In the stock market, it’s important to remember how Kipling started his famous poem that Munger was referencing above:
If you can keep your head when all about you
Are losing theirs and blaming it on you
Stocks go up. Stocks go down. Booms go boom. Booms go bust. Volatility creates the moments for an investor to shine. Keep your head. Treat volatility not with despair and stress, but as a challenge. The best way out is through.
Tweet of the Week
In Case You Missed It…
IAC Q4 2021 Shareholder Letter
Charlie Munger at the Daily Journal Annual Meeting: Meeting Video, Interview with Yahoo Finance, Meeting Transcript.
Carl Icahn on Fed Policy, Activist Investing and McDonald's
Chris Pavese’s 2021 Broyhill Annual Letter
The Intellectual Investor Podcast: McKesson: Why the Best is Yet to Come
Simon Sinek’s A Bit of Optimism Podcast: Happiness with Arthur Brooks
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