Tune in anytime: iTunes – Spotify – Castbox – YouTube
On this episode:
Steven McCarthy is Portfolio Manager at DMX Asset Management.
Steven is a qualified CPA and a passionate value investor. Prior to DMX, Steven spent time as an expert company valuer working on mergers and acquisitions, and in insolvency.
Steven is known for his investments in high-quality small companies on the Australian stock exchange. We spend some time talking about his journey to finance, his investment beliefs, philosophy and process, as well as some of the most common mistakes small company investors make.
At the end of the episode Steven answers my favourite question with one of the best answers so far.
Please enjoy this conversation with Steven McCarthy of DMX Asset Management.
- 0:45: Intro to Steven
- 1:30: what car does Steven drive?
- 2:15: Steven’s passion for finance and free money from the NZ government!
- 4:00: Life in insolvency
- 5:00: The world of valuations, investment banking, private equity and expert reports
- 7:00: Steven’s actions and investments during the GFC
- 8:45: What is DMX? An old trash business?
- 10:00: Leaving a high-paying job to go out on his own
- 12:00: Steven’s DMX investment process, filtering techniques and why micro caps?
- 15:00: Does small-cap mean risk? Steven doesn’t think so.
- 17:30: DMX’s investment beliefs
- 19:00: Is management quality the most important factor for value investors?
- 21:00: Investors undervaluing simplicity
- 23:00: How Steven values businesses — realistic assumptions
- 25:30: Why does he sell?
- 26:00: Where will Steven and DMX be in 5 years?
- 27:00: One thing would tell a younger him about investing
- DMX – Risk-Adjusted Returns
- DMX – The Power of Management Incentives
- DMX – Why Investors Under-Value Simple Businesses
- Sensation Seeking and Hedge Funds (academic paper)
Learn more about Steven:
- Take Owen’s investing free valuation course!
- Click here for - Owen's free cloud stocks investment report
- Click here for - Owen's investment research (Rask Invest)
- Contact Owen: If you have any feedback or advice to share with Owen, you can reach him by clicking here.
- New to Rask? Create a free Rask Account
- Rask Media: get the latest ASX news and stories
The information on this website and in our podcasts is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.