My guest on the show today is Iggy, better known as Iggy on Investing, a deep value investor and blogger. In this episode, Iggy shares how the COVID-19 lockdown gave him the time to dive into investing, turning inspiration from Buffett and Graham into a disciplined deep value strategy focused on small, illiquid companies trading at substantial discounts to book value.
We discuss his “Young Buffett”–style approach—seeking firms at 0.3× to 0.5× book with strong ROIC and catalysts, especially in overlooked European markets—as well as the role his blog plays in clarifying his thinking, building conviction, and holding through long, boring periods.
Iggy also walks us through hard-learned lessons—from the importance of staying within your circle of competence and scrutinizing corporate governance, to navigating shareholder activism via a “stag hunt” scenario. And he shares how he’s building investor community in Europe, including hosting his 2nd Annual Benelux Investor Event on Saturday, September 27.
For more information about Iggy on Investing and to attend his upcoming event, please visit:
You can follow Iggy on Investing on Twitter/X: https://x.com/iggyoninvesting
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Summary:
1. Origins of Passion and Early Influences
Iggy’s investing journey began during the COVID-19 pandemic (2020), when he finally had “a boatload of time on [his] hands” to study.
He was already familiar with Buffett and The Intelligent Investor, but the lockdown provided the push to act.
Earlier, while working at a private bank, he observed bankers “gambling their money away in the market,” which reinforced his belief in Buffett’s idea that markets aren’t always efficient.
2. Deep Value Philosophy and Strategy
Style: Follows “Young Buffett”-style deep value investing, often in small, illiquid stocks trading at discounts to book value.
Ideal Setup: Companies selling below book where he is confident they can earn a return on capital.
Key Traits of Targets:
Deep discount to book (0.5x or even 0.3x).
Strong ROIC track record (e.g., 19% historically).
Sometimes catalysts, such as real estate worth more than market cap.
Geographic Focus: Primarily Europe, where he sees more overlooked opportunities, but remains open to global ideas.
Acknowledges ignoring large caps in recent years “has not necessarily been the best decision.”
3. Writing and Public Learning
His blog, Iggy on Investing, is central to his process. Writing helps clarify his own thinking and invites feedback.
Writing enforces “commitment bias” that aids in holding long-term.
He calls writing his “#1 tip to anybody starting,” as it builds connections, accountability, and learning.
4. Lessons Learned in 2.5 Years
Circle of Competence: Losses stemmed from straying outside it. “Any of the stocks that I’ve lost money on…I understood nothing.”
Good People Matter: Echoing Buffett, “You cannot make a good deal with bad people,” learned firsthand in the Anexo case.
Valuation Provides Defense: Buying very cheap (P/E 3 that becomes 6) still offers margin of safety.
Holding Long-Term is Hard: Describes it as “very slow, very boring.” Writing and not investing full-time help discipline.
Governance Matters: Learned to scrutinize boards for true independence.
Private Owners & Buybacks: Large insiders understand buybacks but often only when buying out the whole company.
5. Shareholder Activism & the “Stag Hunt” (Anexo Case)
Case: Anexo, a UK company trading below book. Majority owners tried to push through a “terrible deal,” offering unlisted shares/loan notes.
Stag Hunt: From game theory, minorities needed to coordinate to block the deal.
Outcome: Insiders executed a buyback at an “unfair price,” increasing their control to 75.1% and forcing delisting.
Lesson: Painful but eye-opening about governance risks, market mechanics, and the difficulty of activism.
6. Avoiding Value Traps
Focuses on track record of ROIC and sensible capital allocation.
Prefers cheap companies that continue to compound, even slowly—“you are sort of sure to earn some form of return.”
This makes holding positions easier and reduces risk.
7. Community and Meetups
Organizes investor meetups in Europe, which he sees as “a desert” compared to North America.
Events include ID dinners and guest speakers, with the goal of idea exchange and building community.
Conclusion
Iggy embodies a disciplined deep value approach: prioritizing fundamentals, staying within his circle of competence, and learning from experience. His public writing both sharpens his analysis and fosters community, while his activism lessons underscore the importance of governance and management integrity.
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