Katie Potts (Herald Investment Management) - An Evangelist For Smaller Companies

Katie Potts founded Herald Investment Management and has managed the Herald Investment Trust since 1994, generating strong returns by investing in smaller companies across the telecom, multimedia and technology sectors.  We discuss Katie's evolution as an investor, the differences between the UK and US markets, and the importance of being a patient and long-term provider of primary capital.  We also explore the benefits of meeting lots of companies and running winners in a diversified portfolio.Show notes:[1:13] Katie discusses founding Herald and how she came to focus on smaller companies[2:55] The importance of having the right structure[4:06] Katie’s evolution as an investor[6:51] How technology has changed and the benefits of renting processing power[10:48] Differences between the UK and US market[12:10] A shortage of long-term capital in the UK[15:10] The current investment environment[18:33] Common investment pitfalls[19:39] Risk management[20:35] Running winners whilst spreading your bets[22:04] The benefits of meeting a lot of companies[24:45] Accounting for stock based compensation[25:49] Diverging from the script and taking a long term view[26:53] Judging the quality of people[28:06] Being a provider of primary capital and the advantages of small cap companies over larger ones[30:09] The importance of patience[30:59] Avoiding the most popular IPOs[32:33] There are always winners and losers in the tech sector[33:06] The big trends over the next decade[34:00]  Be interested and enjoy it

Om Podcasten

Far From The Finishing Post explores the ideas and practices of leading investors in an effort to continuously grow our collective knowledge. This podcast is intended for UK listeners only. The views and information contained within this podcast do not constitute investment advice and should not be used as the basis for investment decisions. Any reference to securities should not be construed as a recommendation to buy or sell these securities. Any opinions expressed are those of the relevant individuals and do not necessarily reflect the views of Troy Asset Management and may be subject to change without notice. Past performance is not a guide to future performance and the value of an investment may fall as well as rise.