In this episode of the Planet MicroCap Podcast, I spoke with Sebastian Krog, Founder & Editor of Treasure Hunting Newsletter on Substack, to unpack the evolution of his process from stock picker to true portfolio manager. We dive into the hard lessons from recent portfolio companies, how “thesis drift” and position sizing can make or break returns, and why he’s shifted toward more predictable, profitable businesses over speculative turnarounds.

Sebastian also shares how industry dynamics often matter more than management, how he’s using AI to uncover themes, and why in microcaps, what you do after you buy the stock is often the difference between winning and losing. We mention several companies and sectors during this conversation, and I’m not a shareholder in any of them.

For more information about Treasure Hunting Newsletter on Substack, please visit: https://treasure-hunting.co/

Chapters:

00:00 Introduction and Background
02:03 Investment Philosophy Evolution
05:28 Case Study: Innovative Food Holdings
11:16 Lessons Learned from Investment Mistakes
17:15 Navigating Management Conversations
22:27 Evaluating Turnaround Situations
25:49 Market Dynamics and Company Performance
27:40 Portfolio Construction and Position Management
30:23 Identifying Compounders and Investment Styles
33:18 Idea Generation and Industry Analysis
36:49 Holding Periods and Investment Expectations
41:20 Managing Behavioral Biases in Investing
46:10 Future Insights on Microcap Opportunities

Planet Microcap hosts the highest quality in-person microcap events in North America. The mission is to bring the best microcap investors, companies, and allocators together to gather, connect, and grow.; visit https://planetmicrocap.com/ to learn more about our Las Vegas and Toronto events.

This presentation is for informational purposes only and should not be construed as a recommendation to purchase or sell any security referenced herein. Planet MicroCap Holdings LLC and MicroCapClub LLC (collectively, “we” or “our”) are not licensed brokers nor registered investment advisors. We, our partners, contractors, members, subscribers, guests, or affiliates may or may not hold positions in one or more of the securities mentioned in this presentation and may trade in such securities at any time. We may have received cash compensation from one or more participants for presenting at past, present, or future events. We recommend you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this presentation.