Michael McGaughy's guest appearances

Michael McGaughy

My Worst Investment Ever Podcast

Compounding Curiosity

Longriver Podcast

Meb Faber

Neil Patel

Karen Briscoe

David Allen

Johnny FD

Kara Goldin

Adam Carroll

Daniel Ramsey

Clayton Morris

Scott Smith

Jeff Bezos

Andy Hill

Joe Saul-Sehy

Dennis Mortensen

John Lee Dumas

OwlTail

Michael McGaughy is the Founder and Portfolio Manager of Research Alpha, a specialist fund which invests in the equity of unloved and out-of-favour quality companies in some of the world’s least expensive stock markets, like Uzbekistan, Argentina and Egypt.    In this conversation, we cover how he started and got interested in emerging markets, what investing in emerging markets involves, and a little bit about Uzbekistan. I hope you enjoy my conversation with Michael McGaughy.   For the full show notes, transcript, and links to mentioned content, check out the episode page on  https://compoundingpodcast.com/ep53    ------   Show Notes: [00:00:31] - [First question] - How Michael first made his way to Asia [00:03:46] - How Michael became an Analyst in Indonesia in 1989 [00:06:44] - Private Equity in China in the mid 90’s [00:09:09] - Developing comfort in investing in emerging markets [00:13:45] - The Three things Mike looks for in an investment [00:16:19] - How quickly do emerging markets rebound? [00:18:33] - Difference between financial crisises and political crisises [00:20:33] - Dealing with foreigner restrictions in emerging markets [00:21:47] - Mike’s process for determining who owns what in an emerging market [00:24:40] - The investment opportunity in Uzbekistan [00:30:13] - Most undervalued life experience? [00:32:38] - How does Mike navigate emerging markets and the language barrier? [00:33:57] - Influential books or people? [00:35:13] - Future plans?   ------   Connect with Michael: Follow Michael on Twitter: https://mobile.twitter.com/michaelmcgaughy  Connect with Michael on LinkedIn:  https://www.linkedin.com/in/michael-mcgaughy-caia-647653/  Read Michael’s blog, Minority Report / 少數派報告: http://michaelmcgaughy.blogspot.com/    ------   Stay up to date with the podcast by signing up for the Compounding Curiosity Substack, where I’ll email you when the latest episode comes out along with my summary and takeaways, links to mentioned content, graphics and the transcript. Sign up at https://compoundingcuriosity.substack.com/    ------   Stay Connected with Compounding Curiosity: Visit the Compounding Curiosity PODCAST: https://CompoundingPodcast.com/  Sign up for the Compounding Curiosity SUBSTACK: https://compoundingcuriosity.substack.com/  Follow Compounding Curiosity on TWITTER: https://twitter.com/CompndCuriosity/  Follow Kalani Scarrott on TWITTER: https://twitter.com/ScarrottKalani/  Sign up for the Allocators Asia SUBSTACK: https://AllocatorsAsia.substack.com/ Join the DISCORD: https://discord.gg/NPVNPVsCYb  Have some thoughts on the podcast? Leave FEEDBACK: https://forms.gle/Du61UxeJ25BkydH49

Michael McGaughy is the Founder and Portfolio Manager of Research Alpha, a specialist fund which invests in the equity of unloved and out-of-favour quality companies in some of the world’s least expensive stock markets, like Uzbekistan, Argentina and Egypt.  In this conversation, we cover how he started and got interested in emerging markets, what investing in emerging markets involves, and a little bit about Uzbekistan. I hope you enjoy my conversation with Michael McGaughy. For the full show notes, transcript, and links to mentioned content, check out the episode page on  <a href="https://compoundingpodcast.com/ep52" rel="nofollow" target="_blank">https://compoundingpodcast.com/ep53</a> ------ Show Notes: [00:00:31] - [First question] - How Michael first made his way to Asia [00:03:46] - How Michael became an Analyst in Indonesia in 1989 [00:06:44] - Private Equity in China in the mid 90’s [00:09:09] - Developing comfort in investing in emerging markets [00:13:45] - The Three things Mike looks for in an investment [00:16:19] - How quickly do emerging markets rebound? [00:18:33] - Difference between financial crisises and political crisises [00:20:33] - Dealing with foreigner restrictions in emerging markets [00:21:47] - Mike’s process for determining who owns what in an emerging market [00:24:40] - The investment opportunity in Uzbekistan [00:30:13] - Most undervalued life experience? [00:32:38] - How does Mike navigate emerging markets and the language barrier? [00:33:57] - Influential books or people? [00:35:13] - Future plans? ------ Connect with Michael: Follow Michael on Twitter: <a href="https://mobile.twitter.com/michaelmcgaughy" rel="nofollow" target="_blank">https://mobile.twitter.com/michaelmcgaughy</a> Connect with Michael on LinkedIn: <a href="https://www.linkedin.com/in/michael-mcgaughy-caia-647653/" rel="nofollow" target="_blank"> https://www.linkedin.com/in/michael-mcgaughy-caia-647653/</a> Read Michael’s blog, Minority Report / 少數派報告: <a href="http://michaelmcgaughy.blogspot.com/" rel="nofollow" target="_blank">http://michaelmcgaughy.blogspot.com/</a> ------ Stay up to date with the podcast by signing up for the Compounding Curiosity Substack, where I’ll email you when the latest episode comes out along with my summary and takeaways, links to mentioned content, graphics and the transcript. Sign up at <a href="https://compoundingcuriosity.substack.com/" rel="nofollow" target="_blank">https://compoundingcuriosity.substack.com/</a> ------ Stay Connected with Compounding Curiosity: Visit the Compounding Curiosity PODCAST: <a href="https://compoundingpodcast.com/" rel="nofollow" target="_blank">https://CompoundingPodcast.com/</a> Sign up for the Compounding Curiosity SUBSTACK: <a href="https://compoundingcuriosity.substack.com/" rel="nofollow" target="_blank">https://compoundingcuriosity.substack.com/</a> Follow Compounding Curiosity on TWITTER: <a href="https://twitter.com/CompndCuriosity/" rel="nofollow" target="_blank">https://twitter.com/CompndCuriosity/</a> Follow Kalani Scarrott on TWITTER: <a href="https://twitter.com/ScarrottKalani/" rel="nofollow" target="_blank">https://twitter.com/ScarrottKalani/</a> Sign up for the Allocators Asia SUBSTACK: <a href="https://kalanis.substack.com/" rel="nofollow" target="_blank">https://AllocatorsAsia.substack.com/</a> Join the DISCORD: <a href="https://discord.gg/NPVNPVsCYb" rel="nofollow" target="_blank">https://discord.gg/NPVNPVsCYb</a> Have some thoughts on the podcast? Leave FEEDBACK: <a href="https://forms.gle/Du61UxeJ25BkydH49" rel="nofollow" target="_blank">https://forms.gle/Du61UxeJ25BkydH49</a>

53 | Michael McGaughy, Emerging Market Investing

My guest today is Michael McGaughy, Founder and Portfolio Manager of Research Alpha, a specialist fund which invests in the equity of unloved and out-of-favor quality companies in some of the world’s least expensive stock markets, like Uzbekistan, Argentina and Nigeria.   In this conversation, we cover how Michael finds safety investing in financial crises; how his experience researching family-controlled conglomerates in Asia in the early 1990s helped him see patterns when he began looking at other markets like Greece; how he became interested in Uzbekistan and his investment in the Uzbek Commodity Exchange; and his views on investing today in Russia and Ukraine. If you like what you hear, you can read Michael's blog here and follow him on Twitter @MichaelMcGaughy. You can also visit my site at www.longriverinv.com. Longriver Investment Partners Limited (“Longriver”) is licensed with the Securities and Futures Commission of Hong Kong (“SFC”) to provide Type 4 and Type 9 regulated activities in Hong Kong to Professional Investors only. Investment involves risk. This podcast is for informational purposes only and it is not intended as promotional material in any respect. It does not constitute an offer, recommendation, or solicitation to buy or sell any securities or services. Longriver makes no representations or warranties, express or implied, as to the accuracy or completeness of the content.

My guest today is <a href="https://www.linkedin.com/in/michael-mcgaughy-caia-647653/?originalSubdomain=hk" rel="nofollow" target="_blank">Michael McGaughy</a>, Founder and Portfolio Manager of Research Alpha, a specialist fund which invests in the equity of unloved and out-of-favor quality companies in some of the world’s least expensive stock markets, like Uzbekistan, Argentina and Nigeria.   In this conversation, we cover how Michael finds safety investing in financial crises; how his experience researching family-controlled conglomerates in Asia in the early 1990s helped him see patterns when he began looking at other markets like Greece; how he became interested in Uzbekistan and his investment in the Uzbek Commodity Exchange; and his views on investing today in Russia and Ukraine. If you like what you hear, you can read <a href="http://michaelmcgaughy.blogspot.com/" rel="nofollow" target="_blank">Michael's blog here</a> and follow him on Twitter <a href="//@MichaelMcGaughy" rel="nofollow" target="_blank">@MichaelMcGaughy</a>. You can also visit my site at <a href="https://www.longriverinv.com/" rel="nofollow" target="_blank">www.longriverinv.com</a>. Longriver Investment Partners Limited (“Longriver”) is licensed with the Securities and Futures Commission of Hong Kong (“SFC”) to provide Type 4 and Type 9 regulated activities in Hong Kong to Professional Investors only. Investment involves risk. This podcast is for informational purposes only and it is not intended as promotional material in any respect. It does not constitute an offer, recommendation, or solicitation to buy or sell any securities or services. Longriver makes no representations or warranties, express or implied, as to the accuracy or completeness of the content.

Michael McGaughy - No One Left To Sell

An award-winning analyst, Michael Mcgaughy has a diverse financial background spanning buy- and sell-side equity research, fund-of-hedge-funds, and private equity. He first came to Asia as an exchange student in 1985 and has been involved with the region ever since, having lived and worked in Beijing, Hong Kong, and Singapore, for different companies including HSBC, the old Crosby Group and StoneWater Capital.  He currently manages a global value fund that looks for companies owned and controlled by quality people have structures that align minority and majority shareholder interests and trade at valuations that are below fair value if not outright cheap.   In this episode, Michael shares his investment story which was getting it wrong in the Ukraine Stock Market. For the experience, he blames the currency that accounts for most of his loss. The Hryvnia declined by 65% vis-à-vis the USD since his initial investment in March 2014. The currency decrease hides the fact that he made real investment blunders. His biggest mistake was not sticking to his my investment process.   “[An old Rothschild's saying] The time to buy is when there's blood in the streets.” – Michael McGaughy     What do you want to hear from the My Worst Investment Ever Podcast? Tell us here!   Resources:   My Worst Investment Ever Book myworstinvestmentever.com Investment Confessional: Getting It Wrong in Ukraine    Topics Covered: 05:47 – The circumstance that leads to Michael’s worst investment ever: missed opportunity to invest in Indonesia and the quick doubling of his money when he spent in Greece’s stock market 07:10 – Stock market opportunity in Ukraine that pops up in 2014, the Maidan Protests that lead to Ukraine stock market to dive cheap. A crisis that did not work out, Michael losing 65% of his portfolio in the next 18 months of investing 08:45 – The fall of the Ukranian currency against US dollars 08:56 – The lessons Michael learned from his investment experience 10:22 – Andrew asks Michael about the qualifications he considers for his chosen stock market venture and how did he knew that the currency would not devalue, what are his parameters and metrics 12:18 – Andrew’s takeaways from Michael's story 14:39 – Michael’s one action to recommend to the listeners take to avoid suffering the same fate: “If you're going to go and look at really cheap assets look for really cheap assets. It's probably good to wait for the crisis to occur rather than get in before.”   Main Takeaways: Lesson 1: “I think there's a lot of key takeaways. I guess the first thing is patience. One reason I'd like to go to the country is you can see the value and do a lot of research. Who is good and bad. Just by looking at kind of past IPO prospectuses or rights issues prospectuses, reading newspapers, talking to people. You get a lot of insight regarding what the exchange rate is when you go there.” – Michael McGaughy Lesson 2: “You can get the company right but the currency wrong and it can be extremely painful. When you're investing outside of your home country, you do need to think about currency.” – Andrew Stotz Lesson 3: “You can look at a country and see that it's down. You can get excited like there is an opportunity. Just hold on. Slow down because currencies can fall dramatically.” – Andrew Stotz   You can also check out Andrew’s books  How to Start Building Your Wealth Investing in the Stock Market My Worst Investment Ever 9 Valuation Mistakes and How to Avoid Them Transform Your Business with Dr.Deming’s 14 Points    Connect with Michael Mcgaughy  LinkedIn michaelmcgaughy.blogspot.com    Connect with Andrew Stotz:  astotz.com Linkedin Facebook Instagram Twitter Youtube My Worst Investment Ever Podcast 

An award-winning analyst, Michael Mcgaughy has a diverse financial background spanning buy- and sell-side equity research, fund-of-hedge-funds, and private equity. He first came to Asia as an exchange student in 1985 and has been involved with the region ever since, having lived and worked in Beijing, Hong Kong, and Singapore, for different companies including HSBC, the old Crosby Group and StoneWater Capital.  He currently manages a global value fund that looks for companies owned and controlled by quality people have structures that align minority and majority shareholder interests and trade at valuations that are below fair value if not outright cheap.   In this episode, Michael shares his investment story which was getting it wrong in the Ukraine Stock Market. For the experience, he blames the currency that accounts for most of his loss. The Hryvnia declined by 65% vis-à-vis the USD since his initial investment in March 2014. The currency decrease hides the fact that he made real investment blunders. His biggest mistake was not sticking to his my investment process. “[An old Rothschild's saying] The time to buy is when there's blood in the streets.” – Michael McGaughy What do you want to hear from the My Worst Investment Ever Podcast? <a href="https://www.facebook.com/andrewstotzpage/" rel="noopener nofollow" target="_blank">Tell us here!</a> Resources:  <ul> <li><a href="https://www.amazon.com/Worst-Investment-Ever-Andrew-Stotz-ebook/dp/B07C81PYP9" rel="noopener nofollow" target="_blank">My Worst Investment Ever Book</a></li> <li><a href="https://www.myworstinvestmentever.com" rel="noopener nofollow" target="_blank">myworstinvestmentever.com</a></li> <li><a href="%E2%80%A2%09http:/latticework.com/investment-confessional-getting-it-wrong-in-ukraine/" rel="noopener nofollow" target="_blank">Investment Confessional: Getting It Wrong in Ukraine</a></li> </ul> Topics Covered: 05:47 – The circumstance that leads to Michael’s worst investment ever: missed opportunity to invest in Indonesia and the quick doubling of his money when he spent in Greece’s stock market 07:10 – Stock market opportunity in Ukraine that pops up in 2014, the Maidan Protests that lead to Ukraine stock market to dive cheap. A crisis that did not work out, Michael losing 65% of his portfolio in the next 18 months of investing 08:45 – The fall of the Ukranian currency against US dollars 08:56 – The lessons Michael learned from his investment experience 10:22 – Andrew asks Michael about the qualifications he considers for his chosen stock market venture and how did he knew that the currency would not devalue, what are his parameters and metrics 12:18 – Andrew’s takeaways from Michael's story 14:39 – Michael’s one action to recommend to the listeners take to avoid suffering the same fate: “If you're going to go and look at really cheap assets look for really cheap assets. It's probably good to wait for the crisis to occur rather than get in before.” Main Takeaways: Lesson 1: “I think there's a lot of key takeaways. I guess the first thing is patience. One reason I'd like to go to the country is you can see the value and do a lot of research. Who is good and bad. Just by looking at kind of past IPO prospectuses or rights issues prospectuses, reading newspapers, talking to people. You get a lot of insight regarding what the exchange rate is when you go there.” – Michael McGaughy Lesson 2: “You can get the company right but the currency wrong and it can be extremely painful. When you're investing outside of your home country, you do need to think about currency.” – Andrew Stotz Lesson 3: “You can look at a country and see that it's down. You can get excited like there is an opportunity. Just hold on. Slow down because currencies can fall dramatically.” – Andrew Stotz You can also check out Andrew’s books <ul> <li><a href="https://www.amazon.com/Start-Building-Wealth-Investing-Market-ebook/dp/B00Y25765G/ref=sr_1_fkmrnull_1?keywords=How+to+Start+Building+Your+Wealth+Investing+in+the+Stock+Market&amp;qid=1552861894&amp;s=digital-text&amp;sr=1-1-fkmrnull" rel="noopener nofollow" target="_blank">How to Start Building Your Wealth Investing in the Stock Market</a></li> <li><a href="https://www.amazon.com/Worst-Investment-Ever-Andrew-Stotz-ebook/dp/B07C81PYP9/ref=sr_1_fkmrnull_1?keywords=My+Worst+Investment+Ever&amp;qid=1552861947&amp;s=gateway&amp;sr=8-1-fkmrnull" rel="noopener nofollow" target="_blank">My Worst Investment Ever</a></li> <li><a href="https://www.amazon.com/Valuation-Mistakes-How-Avoid-Them/dp/1723884960/ref=sr_1_fkmrnull_1?keywords=9+Valuation+Mistakes+and+How+to+Avoid+Them&amp;qid=1552861978&amp;s=gateway&amp;sr=8-1-fkmrnull" rel="noopener nofollow" target="_blank">9 Valuation Mistakes and How to Avoid Them</a></li> <li><a href="https://www.amazon.com/Transform-Your-Business-Dr-Demings-Points-ebook/dp/B00U5SRHJ4/ref=sr_1_2?ie=UTF8&amp;qid=1524026915&amp;sr=8-2&amp;keywords=andrew+stotz" rel="noopener nofollow" target="_blank">Transform Your Business with Dr.Deming’s 14 Points</a></li> </ul> Connect with Michael Mcgaughy <ul> <li><a href="https://www.linkedin.com/in/michael-mcgaughy-caia-647653/" rel="noopener nofollow" target="_blank">LinkedIn</a></li> <li><a href="http://michaelmcgaughy.blogspot.com/" rel="noopener nofollow" target="_blank">michaelmcgaughy.blogspot.com</a></li> </ul> Connect with Andrew Stotz: <ul> <li><a href="https://www.astotz.com/" rel="noopener nofollow" target="_blank">astotz.com</a></li> <li><a href="https://www.linkedin.com/in/andrewstotz/" rel="noopener nofollow" target="_blank">Linkedin</a></li> <li><a href="https://www.facebook.com/andrewstotzpage" rel="noopener nofollow" target="_blank">Facebook</a></li> <li><a href="https://www.instagram.com/andstotz/" rel="noopener nofollow" target="_blank">Instagram</a></li> <li><a href="https://twitter.com/Andrew_Stotz" rel="noopener nofollow" target="_blank">Twitter</a></li> <li><a href="https://www.youtube.com/c/andrewstotzpage" rel="noopener nofollow" target="_blank">Youtube</a></li> <li><a href="https://itunes.apple.com/us/podcast/my-worst-investment-ever-podcast/id1416554991?mt=2" rel="noopener nofollow" target="_blank">My Worst Investment Ever Podcast</a></li> </ul>

Michael McGaughy – How Currencies Can Crush Return in Good Stocks