Kevin Schoovaerts writes the 100 Bagger Hunting Substack, where he blends quality investing with microcap research, all while working full-time as an engineer in Belgium.
I chatted with Kevin in December 2024, and I really wanted to get this throwback chat published here on Skull Sessions.
Yup, another engineer turned investor. It’s a common theme we see all the time. As you’ll see, his engineering mindset shows up in the way he breaks problems down and builds an investment process.
Like a lot of us who talk about quality, Kevin believes quality actually means something in investing.
As you know, our Microcap Quality Index (MSMqi) at the Microcap Investing Cliff Note Substack is built from underfollowed smaller cap companies that meet a minimum level of quality factors that are also meeting multibagger factors.
That naturally led us into a discussion about what he calls his “Yin and Yang” strategy: balancing established quality compounders with overlooked microcaps, spin-offs, and turnaround situations where the odds can become skewed in your favor.
Why do I love this? Because the MSMqi also, from time to time, will identify early stage turnarounds that have a high probability of success of becoming quality companies.
Along the way, we also dug into topics that every investor wrestles with, including pattern recognition, building repeatable checklists, handling volatility, concentration versus diversification, and why understanding your own behavioral weaknesses may be just as important as analyzing a company’s financial statements.
I think you’ll find this Skull Session especially worthwhile.
Skull Sessions is a collaboration with Geoinvesting.com, a full-stack microcap research platform and MS Microcaps LLC , home of the Microcap Quality Index (MSMqi).
Key Takeaways
Quality is important, but so is valuation.
The best opportunities often exist where few investors are looking.
Microcaps remain one of the market’s most inefficient areas.
Pattern recognition is built through years of reading filings and transcripts.
Great investing combines analysis with behavioral discipline.
Volatility is a feature of microcap investing, not a bug.
Concentration should match an investor’s personality and temperament.
Turnarounds work best when the business changes structurally.
Stocks Discussed
Innovative Food Holdings (OTCQB: IVFH): Specialty food distribution company undergoing a management-led turnaround and restructuring.
Adyen (AMS: ADYEN): High-quality global payments processor Kevin bought after a major market selloff.
Silicon Valley Bank (Formerly SIVB): Mentioned as an example of market-wide panic creating opportunities in regional banks.
Kroger (NYSE: KR): Referenced because IVFH’s CEO previously held a senior role there before joining the company.
