Richard de Lisle (De Lisle Partners) - The Greatest Game
Richard de Lisle, founder of De Lisle Partners, has significantly outperformed US equity markets over the last 27 years by investing in US small-cap value stocks. We discuss what value investing means to Richard, his focus on themes and the advantages of taking a sociological perspective. We also explore the current environment, Richard’s investments in primary producers and why investing is the greatest game.Show notes:[1:05] Richard talks about how his father’s misfortune inspired him to start investing[3:09] Don’t follow others as experts can be self-serving[4:00] Richard’s career on the sell-side[7:01] Equities were an unloved asset class in the 1970’s and early eighties[8:18] Getting hooked on the American market’s intricacies[9:13] Transitioning from the sell-side to the buy-side[12:12] Why Richard focuses on US small cap value[13:26] Small cap value’s outperformance between 1975 and 1983[14:38] Ducking and weaving in difficult environments[16:25] Taking a top down approach[17:48] There is value in the least worst[18:40] Looking backwards not forwards[20:18] Identifying investment themes[23:05] People often underestimate that value stocks can become growth stocks[24:02] Reading broadly and taking a sociological perspective[24:39] The advantage of being detached[25:39] Investing is the greatest game[26:51] Investing in primary producers in an inflationary environment[29:46] Complacency around wage inflation[31:21] Short duration stocks[33:05] Work out what you want and set a plan to achieve it