“We invest in a select number – 8 to 15 – of publicly listed companies primarily in the United States. Our focus is discovering mispriced companies in underfollowed markets by doing extensive in-depth research and visiting each management team.   The average market cap of the companies we own is ~$200m.”

While some might argue that investing in a larger bucket of stocks is an equally good or even better way to capture a larger opportunity to nab multibaggers, we do have to admit that the strategy they use is similar to that of our 4 to 7 stock Buy on Pullback Model Portfolios that can be argued contain “discounts on wonderful companies”. Our Buy On Pullback Strategy Webinar of ours offers some more insights into our strategy.

And of course, their market cap preference is right up our alley.

Besides, connecting with some of River Oak’s stocks in their H2 2023 letter, we also connected with the tenets they lean on to start to qualify potential investments.

• Sells a wonderful product that will generate substantial cash for years to come.
• Treats their customers, employees, and community admirably.
• Is run by honest and able people that also have ownership in the business.
• Does not take excessive risk.
• Has a long-term plan for the business.
• Is selling ownership at a significant discount to fair value.

Sounds pretty good to us. We also lean on 2 lists that expand on both the qualitative and quantitative, our Tier One Quality and Multibagger checklists.

We obviously agree with their assessment on FTLF and PCHM that have been Model Portfolio holdings of ours since 2018 and 2016, respectively. And the returns speak for themselves.

So, once in a little while, it’s nice to get some validation on the stocks that we choose to put in our Model Portfolios from well-respected firms such as River Oaks that dabble in the same universe as ours.

As a side note, we also wanted to point out that gaming company Galaxy Gaming Inc (OTC:GLXZ) is part of the list, so that calls for a shout out to a contributor of ours that identified the stock as an undervalued asset back in 2016, and currently with the exceptional returns below!

Now, it looks like our next task is to look under the hood of the remaining companies on their list. Maybe there’s another diamond in there, so definitely keep track of our own assessments on them should we find a few compelling enough to dig deeper.

If you want to see our evolution of research on FTLF or PCHM, and the initial GeoInvesting contributor pitch behind GLXZ, let us know and we’ll be happy to share it with you for free.