Ralph Molina

In this podcast, my friend @RyanReeves_ and I discuss: - How I invested 100% of my net worth in $AMNF in 2021 - How my big bet in $AMNF led me to being hired as a consultant to the CEO - How I became a Board Member and Executive Officer at $PRKA - How my years of experience as an insider has changed the way I analyze and screen for stocks open.spotify.com/episode/61MGd8…

How do you know if you have conviction? Gauging sentiment around this for my newest article, which will be published this week.

@rgrfan Good point. I would also add that these kinds of companies tend to issue way too much equity, take on way too much debt, and/or get too diversified esp. via bad acquisitions. Bad capital allocation almost always happens because the core business is more or less a sinking ship.

After reviewing hundreds of companies, most fail for one of three reasons: 1. Revenue growth is slowing. 2. Margins are deteriorating. 3. There is no clear driver for future growth. The list gets much shorter after that.

I just published my Investment Thesis on $AMNF on Substack. I invested 100% of my net worth in the company in 2021 for 3 simple reasons. Read the full thesis here: highconvictioninvesting.substack.com/p/armanino-foo…

@crupi_matthew Thanks, Matthew!

Great piece by @ralphinvests on Armanino foods $AMNF. This is deep research that highlights the economics of the foodservice pesto market and the market structure that has allowed $AMNF to accelerate in the past 5 years in particular. Give it a read on his substack if interested.

I can't help but notice the similarity between "The Buffett Screener" that @MohnishPabrai talks about and Buffett's framework for conviction outlined in his 1966 Partnership Letter. In both cases, Buffett uses confidence intervals and emphasizes the need to think probabilistically. Combining these two frameworks seem to be Buffett's secret to making high conviction decisions.

My followers can receive a free copy of the article if they like this message.

I had the honor of being featured in the latest edition of @IdeaBrunchEmail. Really proud of how this turned out and the feedback we've received thus far. Thank you @StockJabber for the thoughtful interview questions. Feeling lucky to be included alongside the many talented investors who have also been profiled in the newsletter. readideabrunch.com/p/idea-brunch-…

I would propose that the "repeatable framework" is your "investment style" and that "due diligence" is in fact "process" in the sense that you have a particular way of framing the investment problem/opportunity. It's impossible to separate the way you research a stock from the way you frame the stock — for the frame is simply the basis on which you will or won’t make an investment. All research questions (aka due diligence or process) flow through the initial framing. And because each investor has a different way of framing (which is an output of their investment style), each investor will have a different research process. There's a great article written by Portfolio Manager Geoff Gannon in 2013 that expands on this idea: gurufocus.com/news/224819/ho…

Due diligence on a company or security is research. It is NOT Investment Process. Say it with me...Research is NOT process. A sound process is the repeatable framework that governs everything: how you source your universe, how you conduct DD on a sector/company/security, sizing guidelines and/or rules, entry discipline (catalyst or no catalyst), what would make you change your mind and what you have to believe, portfolio construction, and risk management parameters. Due dili is just one part of process. Conflating the two is a mistake, especially when training people who are still forming habits. see tweets (there are many!)

In this podcast, @BobbyKKraft and I discuss my very contrarian views: - The worst question investors repeatedly ask management teams, based on my IR experience - The most dangerous, yet most overlooked risk when evaluating management teams - How investors might be shocked at how much more "risk" they would find in their stocks if they got the chance to be an insider for 1-week - The unusual way I would go about screening the companies I'm meeting with at the @PlanetMicroCap @MicroCapClub conference youtube.com/watch?v=DzzgEj…

🎙️NEW PODCAST: Emergency Board Meeting Test with Ralph Molina, High Conviction Investing Newsletter @ralphinvests on the @PlanetMicroCap Podcast 📺Watch: youtube.com/watch?v=DzzgEj… 🎧Listen: podcasts.apple.com/us/podcast/eme…

I am very excited to share my 1st article in a 4-part series called "Testing Your Conviction" — an attempt to scientifically measure conviction, or at least systematically test conviction. In this 1st article, I share how Buffett's 1966 Partnership Letter formula reveals a 4-step formula for testing conviction — based on Buffett's own description around his very famous investment in $AMEX after the Salad Oil Scandal.

Just finished writing a 1,000-word article that answers the one of the important questions in investing: Can you scientifically measure conviction? Or systematically test for conviction? The answer to that... will be on my Twitter/Substack on Monday. Subscribe to follow along!

@ToddWenning Looks like Berkshire needs baserate.com's team-level conviction function😉 @farnamjake1 @philippeterson_

I see the sell-off of “Todd’s stocks” as strange investment team behavior. There should be team-level conviction in at least some of the names. So any investment stays only as long as the idea generator is still around?

In conjunction with my breakdown of $AMNF on @RyanReeves_ podcast, I am pleased to share the 50-page Research Report I wrote in 2021. This deep dive report not only gave me the conviction to invest 100% of my net worth, but it also caught the attention of the Board and led me to being hired by the CEO as a consultant in 2025. Full report: t.co/DJYgcpZq8e

@Kreuzmann13 Thank you for the kind words! Credit goes to @RyanReeves_ for being a great interviewer.

Listening to this again. It is the best podcast I have ever heard and took lots of learnings from it. 100% portfolio in one high quality micro-cap. It is a must listen. $amnf reminds me $iccc

Conviction is not about the "buying" — it's about the "owning". How you react as an investor during your expected holding period is the true test of your conviction. - What does your stomach feel when the stock drops 50%? - Does your brain to into scramble mode when there's unexpected news in the industry? - Do you need to solely rely on management's evaluation of a big acquisition that you did not foresee? You can have the best prepared thesis in the world before you buy the stock. But will not know whether or not you truly had conviction until those things happen. That's why you have to think of yourself as an "owner" first, rather than an "investor." It goes back to what Ben Graham said all those years ago: "Investing is most intelligent when it is most businesslike."