Welcome to the latest issue of the PRO Weekly Digest. Every Saturday for Seeking Alpha PRO subscribers and Sunday for all other Seeking Alpha users, we publish highlights from our PRO coverage as well as feature interviews and other notable goings-on with SA PRO. Comment below or email us at pro-editors at seekingalpha.com to let us know what you think. Find past editions here.
Magic Investments is a value investor and long-time Seeking Alpha contributor. Notable calls include a bullish thesis on iRobot (NASDAQ:IRBT) and bullish thesis on Sypris Solutions (NASDAQ:SYPR). We emailed with Magic Investments about battleground stock magicJack (NASDAQ:CALL), how the robotics trade plays out, and how having a desire to learn and the patience to act can help capture alpha.
Seeking Alpha: Having an edge is critical to achieving alpha – what is your edge as a value investor?
Magic Investments: This is an interesting question in that almost everyone who wants to get ahead in investing always wants to know what is your “secret”, or what is your “special sauce”. Unfortunately for them, I usually give a rather boring answer! For me, the biggest edge is simply to have patience and don’t be afraid to look where nobody else is. Patience is something that is surprisingly hard to come by in the investing world, and you can often gain an edge simply by getting to know a few companies well and sticking with them. This is particularly true for small companies which don’t have a large audience from the professional investing world.
One of my innate strengths is that I am a Learner, in the sense that I love to research and learn new things. If my interest is piqued about a company, I will dig through its filings and try to learn as much as I can about it and just look for any intriguing points which may make it a worthwhile investment.
Sometimes you don’t find much, but it’s good to put the company on your watch list and check on it from time to time. I’ve made…