My guest on the show today is Kayser Pravia, Founder of El Planeta Financiero. In this episode, Kayser shares his mission to expand financial literacy and microcap investing for Spanish-speaking investors worldwide.
We discuss his evolution from day trading losses to a Buffett- and Lynch-inspired value investor, why he runs a concentrated portfolio, and his focus on recession-proof businesses with strong balance sheets. Kayser also talks about building El Planeta Financiero into a growing educational platform and investing community for Spanish speakers.
For more information about El Planeta Financiero, you can subscribe to the YouTube channel here: https://www.youtube.com/@elplanetafinanciero
You can Follow Kayser Pravia on Twitter/X @elplanetaf: https://x.com/elplanetaf
Watch on YouTube:
Summary:
I. Introduction: The Mission of El Planeta Financiero
Kayser Pravia, founder of El Planeta Financiero, is on a mission to bring financial literacy and stock market investing—particularly in small and micro caps—to Spanish-speaking communities. Pravia’s focus is “financial literacy for Spanish-speaking communities.” His journey began from recognizing a personal knowledge gap and has grown into a multi-platform educational initiative reaching hundreds of thousands of people.
II. Humble Beginnings and the Spark of Investing
Pravia’s interest in investing began during a psychology class in Kansas, USA, when a teacher asked who was investing in Apple stock:
“Everyone had their hand in the sky... I was the only one in the classroom that wasn't investing at all.”
That moment, combined with an early, unsuccessful attempt at day trading—“losing my money”—motivated him to seek better strategies. His mother gave pivotal advice:
“No, please search who is the most successful investor of the stock market.”
This led him to the teachings of Warren Buffett and Peter Lynch, shifting his mindset from short-term speculation to long-term value investing.
III. The Evolution to Small and MicroCap Investing
Starting with large-cap names like Twitter and Visa, Pravia’s thinking evolved after reading Buffett’s comment about generating 50% returns in his early years by investing “peanuts.” This, along with Peter Lynch’s concept of “multibaggers,” drew him to the small and micro-cap space. Influences like Ian Cassel and the MicroCapClub deepened his interest.
By 2021, he had moved his entire portfolio from large caps to small caps—a transition that faced early skepticism. When his portfolio underperformed the S&P 500 and suffered a 30% drawdown in 2022, critics questioned his strategy. But Pravia stayed the course, recognizing that:
“The small cap world, the micro cap world is a whole different world… You can find companies that don’t care about macroeconomics, they don’t care about politics.”
IV. Investment Philosophy and Due Diligence
Pravia’s investing approach blends Buffett and Lynch principles with a focus on small-cap realities:
Recession-Proof Businesses – Focuses on industries like food, services, maintenance, and health that he considers “anti-crisis.”
Healthy Balance Sheet – Prioritizes companies with net cash to mitigate risk.
Growth and Management Quality – Seeks businesses with strong growth potential and management teams that consistently deliver.
Peter Lynch Playbook – Finds businesses with proven models that can scale “10x, 20x, 30x,” citing his early success with Sprouts Farmers Market.
Constant Follow-Up – Actively tracks earnings calls and company updates to ensure management execution matches strategy.
V. Case Study: Mama’s Creations and the Power of Concentration
Pravia’s process is exemplified by Mama’s Creations. Initially flagged in 2021 as recession-proof with net cash, he passed due to client concentration risk (60% of revenue). By 2024, diversification, new products, and a board refresh convinced him to invest at “a good price.” Now, he tracks acquisitions, organic growth, margins, and strategic initiatives.
This experience reinforced the value of a concentrated portfolio. Inspired by other microcap investors, Pravia now runs seven core positions, with his largest holding 35% of his portfolio and the second-largest at 20%:
“I’m very concentrated… fearless with my best ideas.”
VI. The Transformative Power of Acquisitions
An early acquisition win—100% in three months on a position that was just 2% of his portfolio—taught him the importance of sizing. This year, his conviction paid off when a 20% position in Marloi was acquired, producing significant gains:
“I made my whole year in one situation… I don’t care about what the S&P 500 is doing… I only care about finding these kinds of situations.”
VII. Bridging the Knowledge Gap
Pravia works to counter the negative perception of the stock market, especially in Latin American communities:
“People relate small to more risk. But what they don’t understand is that small for us are companies that are selling millions.”
Through three weekly YouTube videos and monthly in-person classes in Panama, Pravia promotes long-term, value-based investing. His audience spans the globe—Spain, Mexico, and Argentina—with some students even traveling to Panama to present their own investment theses. His mission is clear:
“Spread the voice about this magnificent world” and connect more Latin American investors to opportunities like the Planet MicroCap event.
VIII. Key Message: Low Risk, High Reward
Pravia emphasizes disciplined investing:
“You can win plenty of money taking very low risk… find companies with no debt, very undervalued, very recession-proof businesses, and they will eventually reach intrinsic value.”
And his caution is equally strong:
“Don’t take unnecessary risk. Don’t lose money stupidly.”
IX. Geographic Investment Focus
While the U.S. is his primary hunting ground, Pravia also invests in companies in Canada and Europe (Italy, France, Spain)—always in strong currencies like USD, CAD, EUR, and GBP. He avoids South and Central American markets due to currency volatility.
X. Conclusion
Kayser Pravia, through El Planeta Financiero, is building a movement for financial literacy and disciplined investing among Spanish-speaking communities. His journey—from a curious student to a focused small-cap investor—reflects the power of education, persistence, and long-term thinking. Today, he inspires a growing global audience to approach the stock market with knowledge, patience, and a focus on mitigated risk and asymmetric reward.
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