Entrepreneur and Author Sebastian Krog: Perspectives from a German-based Microcap Investor [GeoWire Weekly No. 128]

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Early last week on March 18, 2024, I spoke with Sebastian Krog (@SebKrog), microcap investing-focused Substack author of the column Treasure Hunting. He shared that at 26, he’s actually not a full-time investor, but owns and operates a marketing agency, which has been his primary focus for the past five years.

In his spare time, including weekends and evenings, he dedicates himself to researching and writing about stocks, particularly microcaps. His newsletter currently has over 1000 followers on Substack.

His journey into investing began at 16, initially inspired by the concept of investing in the stock market through ETFs, as advocated by a prominent figure in Germany. This led him to start with small, monthly investments in ETFs. As he explored investing further, he briefly ventured into large-cap stocks like Tesla, Facebook, and Amazon.

However, recognizing the limited impact of small investments on these well-known companies, he paused his investment activities to focus on his university education and entrepreneurial ambitions, eventually starting his online marketing agency.

After a hiatus of six to seven years, Sebastian returned to investing post-COVID, around 2020-2021, as his business stabilized and provided him with disposable income.

This time, he delved deeper into the world of microcaps, driven by a desire to diversify his net worth beyond his business.

His renewed interest in investing was sparked by reading influential books like Peter Lynch’s “One Up On Wall Street” and Chris Mayer’s “100 Baggers,” as well as absorbing insights from Mohnish Pabrai’s talks on investment philosophy. This exploration led him to appreciate the potential in microcap investing, inspired by the early strategies of notable investors like Warren Buffett and Charlie Munger.

His journey from ETFs to large caps and eventually to microcaps reflects a thoughtful evolution towards seeking significant returns by investing in smaller, less explored companies.

His coverage currently includes a blend of German, Canada, UK and US-based microcap stocks, many of which he either quickly highlights on his blog, or takes a bit of a deeper dive, also disclosing portfolio updates from time to time.

It was refreshing to see an up and coming microcap investing peer adopt some of the same approaches to investing as GeoInvesting, and convey some of the things he does (or does not) focus on to generate his ideas, a few of which actually intersect with our coverage and Model Portfolio inclusions.

~Maj Soueidan

Find some supporting clips below where Sebastian discusses:

• Market Areas That He Avoids [Complimentary]
• How He Decides On The Sizes of His Positions [Complimentary]
• His Regrets In Leatt Corporation (LEAT) [Complimentary]

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In case you missed it:

• A Pitch of His Largest Holding [Pro]
• A Pitch of a London-based Financial Technology Services Company [Pro]

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Other Clips at Pro Portal:

• Sebastian’s Transition to Microcap Investing
• The Valuation Gap Between U.S. & Germany Microcaps
• Sebastian’s Process for Finding New Investment Opportunities
• Sebastian’s Trading Strategy
• Considerations Across U.S., Canadian, UK, & German Microcaps

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Market Areas That Sebastian Avoids

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How Sebastian Decides On The Sizes of His Positions

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Sebastian’s Regrets Regarding Leatt Corporation (LEAT)

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The post Entrepreneur and Author Sebastian Krog: Perspectives from a German-based Microcap Investor [GeoWire Weekly No. 128] appeared first on GeoInvesting.

Source: https://geoinvesting.com/sebastian-krog-perspectives-german-based-microcap-investor/