Ep670: Bogumil Baranowski – Be Careful With Businesses in Secular Decline

Full Credit: Andrew Stotz and his My Worst Investment Ever Podcast

Bogumil Baranowski is a founding partner of Sicart Associates, LLC, a New York City investment firm. He has almost two decades of investment experience. He is the author of Outsmarting the Crowd and Money, Life, Family. He is the host of the Talking Billions Podcast.

Lessons from investing mistakes:

Just because it’s cheap, don’t compromise on other factors that affect a stock, such as debt, management, and secular decline.
Decide to cut your losses and not just think in terms of money but also in terms of time
As an investor, money is one thing, but time is also crucial. Don’t waste too much time on a bad investment.
It’s not only what you’re buying but also what you choose not to buy that can make a difference in the portfolio.
Too much debt in a company is a red flag.
Pay attention to how the management communicates with you.
Be careful with a secular decline if you’re a value investor looking for a bargain.
A company that can hold on to cash and is ready to survive will flourish in any economic downturn.

Debt is the number one risk for an existing company. Run with a minimal amount of debt.
When acquisitions come along, and you got the cash, you can move fast and beat your competitors.
Just because it’s cheap doesn’t mean you have to buy it.

When analyzing a company, pay attention and ask the right questions. Take the time to get to know the company’s story. Then explore the worst thing that can happen and how you can lose money on that business. Once you have that figured out, you can get excited about why you can make money in it.

If you’re new to investing, Bogumil recommends reading One Up On Wall Street by Peter Lynch. If you know a bit about investing, then any book about Warren Buffett is fantastic.

---- ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Crisis Investing: 100 Essays⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ - My new book.

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Learn more about ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Bogumil Baranowski⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

Learn more about ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Sicart Associates, LLC⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

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IMPORTANT: As a reminder, the remarks in this interview represent the views, opinions, and experiences of the participants and are based upon information they believe to be reliable; however, Sicart Associates nor I have independently verified all such remarks.

The content of this podcast is for general, informational purposes, and so are the opinions of members of Sicart Associates, a registered investment adviser, and guests of the show. This podcast does not constitute a recommendation to buy or sell any specific security or financial instruments or provide investment advice or service. Past performance is not indicative of future results. More information on Sicart Associates is available via its Form ADV disclosure documents available ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠adviserinfo.sec.gov⁠

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My Worst Investment Ever Podcast with Bogumil Baranowski: Lessons from Investing Mistakes

Talking Billions with Bogumil Baranowski