David Barbato

To celebrate 1 month since this @MicroCapClub Club Conversation came out, I'm publishing it here. In this conversation, @HowardMarksBook shares his insights on investment strategies, the nature of risk, and the impact of market cycles. He discusses the origin of his company, Oak Tree, and elaborates on the concept of risk, emphasizing that it is subjective and tied to the possibility of undesirable outcomes. Marks also explores the upside of bubbles in technology, the implications of Brexit on the UK economy, and the current state of private credit. He provides advice on portfolio structuring, the importance of incentives in organizations, and personal reflections on success and happiness. Join MicroCapClub and unlock the ability to listen and participate live in these discussions - microcapclub.com/join-now/ Chapters 00:00 The Origin of Oak Tree Capital 03:19 Understanding Risk 07:23 The Upside of Bubbles 11:29 Market Dynamics and the S&P 500 14:25 Microcap Stocks and Market Cycles 19:23 The Impact of Brexit on the UK Economy 22:50 Risks in Private Credit 25:41 Catching Falling Knives in Investing 31:35 Navigating Financial Crises 34:44 Investment Philosophy and Risk Management 39:03 Asset Allocation Strategies 41:49 Personal Insights and Success Factors 46:01 Quality of Life and Enjoyment 49:50 Building Effective Organizations 54:41 Reflections on Happiness and Legacy

Interesting how Grok, Chat GPT, and Gemini have completely different opinions on weather being overweight is your responsibility or not. Just a reminder that LLMs are filled with biases.

@david_katunaric Why is it trading so cheap?

P.S. 2 At the current price of $5.19, $WSTL is trading at 1.8×LTM EV/EBIT and 0.9× P/B. Roughly four-fifths of book value is made up of current assets. Plus it has some NOLs that will turn into DTAs and offset future taxes. LTM results below:

yes!

In this @MicroCapClub Club Conversation, Tom Bachrach of @PFHCapital, shares his investment philosophy, risk management strategies, and experiences in frontier markets like Kazakhstan. Discover how deep value investing, humility, and global opportunities shape his approach to building a resilient portfolio. This discussion took place live on February 23rd, 2026, on the MicroCapClub Community. Join MicroCapClub and unlock the ability to listen and participate live in these discussions - microcapclub.com/join-now/ Chapters 00:00 Introduction to Tom Bachrach and PFH Capital 06:12 Tom's Investment Philosophy and Approach 11:25 Early Days and Influences in Investing 16:23 Staying Grounded in Investment Success 19:36 Navigating Quirky Investments and Risk Management 24:26 Position Sizing and Investment Strategy 29:32 Investor Expectations and Market Perceptions 31:19 Investing Perspectives: Frontier Markets vs. Familiar Grounds 36:20 Case Studies: Successes and Failures in Investment 39:23 The Formation of PFHCL: A Strategic Partnership 42:32 The Value of Collaboration: Freelance Analysts and Team Dynamics 47:09 The Future of Analysts: AI's Role in Investment Research 51:32 Navigating Software Investments: Risks and Opportunities 58:31 Lessons from Adversity: Building Resilience in Life

@PFHCapital @MicroCapClub 😂

@MicroCapClub @Valuehunte Unless I’m gonna to go long Botox, I should probably update my headshots every two decades lol

Here is our latest Club Conversation with @PFHCapital. Thank you @Valuehunte for hosting. microcapclub.com/club-conversat…

When you comment to your microcap fund manager friend that one stock you're in is up 20% in a day

@wkinvestments of course hehe

@Valuehunte Thank you for the explanation, David.

FTD 29/10 Not applying Warren's advice of praising by name and criticising by category

@wkinvestments Fool Things Done, every week for years I think of what stupid things I , done for the week and publish them here so when I need some humilty I can just come here

@Valuehunte What's ftd?

CEO of $AP purchased $50,000 worth of shares at $6.67 open market. app.tracktacle.com/publication/do…

During the conversation today with Lee Freeman-Shor and Clare Flynn Levy who have analyzed the trade data of many of the best fund managers in the world - I asked what decision type do successful managers have the most issues with? Answer: Selling losers

Paywall removed :)

This will be a fun one!

"Are you feeling lucky, punk?" Interesting :)

@Investmentideen agreed

@Valuehunte Downside Risk = multiple contraction. Often much more difficult for earnings growth to keep up with multiple contraction risk.

Next time a stock I own goes up too much too fast, and all the optimism has been priced in, I'll take some chips off the table, even if I'm confident in the long-term prospects. Also, for the second time in a short period, if I'm disappointed with the results or don't feel strongly enough about the risks, I won't let the share price inform my decisions.

@nicolaguida73 Ahh, I don't know tbh. It really depends on your approach.

@Valuehunte Hehe true. I wanted to say that everything, except for special situations, boils down to the quality and durability of cash flows (and therefore of the company's moat). Just basic Buffett & Munger stuff 🙂

@StefanWinterToo Actually, I had forgotten about ACNT lol

@Valuehunte $acnt and $ap? 😅

@TurboToni4 😜

@Valuehunte $AP

@david_katunaric Of course ahaha

@Valuehunte Makes sense. Though I doubt a scenario similar to that one happens often.

@nicolaguida73 I agree, Nicola, thanks for your thoughts :) Things always look clear in hindsight, of course, haha

@Valuehunte Hi David, this is really one of the most difficult tasks for any investor.. The only thing I can say based on my experience is: it depends. Sometimes you sell a stock that looks expensive (cheap) but it's not, especially if the terminal value is much bigger (lower) than estimated