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56 - HemaCare 100-Bagger with Dan Schum

The DIY Investing Podcast

Release Date: 12/29/2019

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The DIY Investing Podcast

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The DIY Investing Podcast

Want Investing Research Directly to your Inbox? Sign-up for my Free Substack: Mental Models discussed in this podcast: Second-Order Effects Mean Reversion Factor Investing 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:  YouTube Channel:  Show Outline Selling Series A lot of time is spent on buying stocks. Yet, almost just as important, if not more is knowing when to...

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Mental Models discussed in this podcast: Dead Money Opportunity Cost Time is Money Intrinsic Value Compounding 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:  YouTube Channel:  Show Outline The Dead Money Problem and Solution “If you remember only one thing today: Time is Money”  What is Dead Money?  Any asset you own that is not growing intrinsic value...

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Mental Models discussed in this podcast: Incentives Skin-in-the-Game Accredited vs non-Accredited Investors 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:  YouTube Channel:  Show Outline Key Concepts for thinking about compensating a Portfolio Manager Management Fees  Management Fees are priced a percentage of the assets under management.  A 1% management...

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Mental Models discussed in this podcast: Opportunity Cost Alpha Superpower of Incentives Competitive Advantages Process vs Results 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:  YouTube Channel:  Show Outline Key Concepts for selecting a Portfolio Manager Choosing an investment manager is a lot like choosing a stock Don’t invest in anything you don’t understand...

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Mental Models discussed in this podcast: Stress Testing Time Horizon Stoicism 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:  YouTube Channel:  Show Outline The full show notes for this episode are available at  Key Concepts for Investing during a Crisis Stress Testing - Bankruptcy Risk? Goal: Survive Stress test businesses not stocks Focus on Fundamentals ...

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The DIY Investing Podcast

Mental Models discussed in this podcast: Investing Ratios Break Points 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:  YouTube Channel:  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 . Show...

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More Episodes

How to connect with Dan Schum

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.

You can find out more information by listening to episode 11 of this podcast.

Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode56

Part 1: Dan Schum's Investing Process

  • Large diversification 30-60+ stocks
  • Buy "NoNameStocks" that no one else has heard about
  • Target characteristics:
    • Left for dead companies
    • Often unprofitable
    • Dark or Deregistered from the SEC
    • A long-term chart that shows abandonment by investors

Part 2: Example Stocks

  • HemaCare Corporation $HEMA - Dan's 100 bagger in 4.5 years (From $0.25 to $25.40 buyout on the podcast recording date of 12/16/2019)
  • Clancey Systems International $CLSI - A wild ride on a shell company with no assets leading to a 1000% gain in a few months
  • Dewey Electronics $DEWY - A company that just won't die, but with hidden real estate assets worth more than the market cap.