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129 - What is the role of a Catalyst in Value Investing?

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Manage episode 320923966 series 2983848
Content provided by Trey Henninger. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Trey Henninger or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Mental Models discussed in this podcast:
  • Catalyst
  • Activation Energy
Please review and rate the podcast

If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.

Follow me on Twitter and YouTube

Twitter Handle: @TreyHenninger

YouTube Channel: DIY Investing

Support the Podcast on Patreon

This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron.

Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode129

Catalysts in Value Investing
  • Catalyst Definition
  • Trade vs Hold Return
  • Free Call Option
  • Catalysts speed up the rate of multiple expansion leading to a high IRR "trade" return
  • Business Catalysts vs Stock Catalysts
  • Solitron Devices Example

Summary:

Catalysts can supercharge investing returns for value investor if utilized properly OR they can distract from a central thesis and cause you to make poor decisions. A catalyst should be seen as a free call option that boosts a "trade" return.

  continue reading

137 episodes

Artwork
iconShare
 
Manage episode 320923966 series 2983848
Content provided by Trey Henninger. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Trey Henninger or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Mental Models discussed in this podcast:
  • Catalyst
  • Activation Energy
Please review and rate the podcast

If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.

Follow me on Twitter and YouTube

Twitter Handle: @TreyHenninger

YouTube Channel: DIY Investing

Support the Podcast on Patreon

This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron.

Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode129

Catalysts in Value Investing
  • Catalyst Definition
  • Trade vs Hold Return
  • Free Call Option
  • Catalysts speed up the rate of multiple expansion leading to a high IRR "trade" return
  • Business Catalysts vs Stock Catalysts
  • Solitron Devices Example

Summary:

Catalysts can supercharge investing returns for value investor if utilized properly OR they can distract from a central thesis and cause you to make poor decisions. A catalyst should be seen as a free call option that boosts a "trade" return.

  continue reading

137 episodes

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